Traditional IRA contribution and 1099-R

[bl121]

Hi,

  I am working on 2022 tax return and need some help.

  Part 1: Background info:

  On January 2021,   We made $7K contribution for  2021 Roth IRA contribution.

  When we filed 2021 tax return on  2022, due to selling rental property in 2021,  income too high for Roth IRA contribution, contribution to Roth is not allowed.  So, we have to  re-charactered it to traditional IRA which is not tax deductible  due to  high income.  Re-charactered $6845 as 2022 traditional IRA contribution. $7000 become $6845 due to down market. Therefore received 1099-R and 5498 form for 2022 tax year.

   On January 2022, we made $7000 contribution to  Roth IRA for 2022 contribution. We received form 5498 for Roth contribution for 2022 tax year.

  Part 2: Data from Turbo Tax for my 2022 tax return.

Here is what I have from Turbo Tax for my 2022 tax return.

1. It has 1099-R form with correct info (from 2021 Roth IRA Re-charactered)
2. It shows my 2022 Traditional IRA contribution is 0
3. It shows my 2022 Roth IRA contribution is 7000

 Part 3:  My question

Does I file 2022 tax return correctly? My confusion is mainly on my 2022 Traditional IRA contribution.

Thanks a lot!

BL

[ThomasM125 · Accepted solution]

You wouldn't have any income to report for the IRA funds transerred to the traditional IRA since you had a loss on the investment, so that looks good. The traditional IRA contribution would not show any deduction assuming you made non-deductible contributions, so that looks good. Your ROTH IRA would not show as tax deductible since it is a ROTH contribution. So as long as you reported the Form 1099-R distribution correctly and input the non-deductible IRA and ROTH IRA contributions in TurboTax, everything looks OK.