We just completed (2019) the transfer of an excess Roth contribution into a Traditional IRA. How do I report this TIRA contribution in Turbotax for 2018?

[macuser_22]

When was the Roth contribution made?
Did you have it recharacterized to the Traditional IRA or simply remove it and then make a Traditional IRA contribution?

[Steve-R-]

The Roth contribution were for 2018. It is now 2019. Technically, the money transferred into the Traditional IRA (TIRA) would now be a 2018 TIRA contribution since I was undoing the Roth contributions. Since this is an "after-the-fact" deposit, I will not have a 1099-R to document this deposit.  

[macuser_22]

Again, how was this done?    A recharacterization is reported one way and a withdrawal and contribution a different way.

The 1099-R that you will receive in Jan of 2020 will also be different depending on how it was done.

[Steve-R-]

Recharacterizations are no longer allowed. However, a "contribution" from your earned income paycheck into a Roth IRA can be "converted" into a Traditional IRA "contribution".

[macuser_22]

A Traditional IRA to Roth *conversion* and then recharacterized back to the Traditional IRA are no longer allowed.

Recharacterizations of a Roth *contribution* to a Traditional IRA is still allowed and that sounds like it is what you did.

[macuser_22]

You can use the procedure below to report the recharacterization now so when the 1099-R with the code "R" comes, yiu can ignore it and not have to amend.

[macuser_22 · Accepted solution]

You will not receive a 1099-R with a code "R" until next year, but it must be reported on your 2018 amended tax return. However, you do not actually enter the 1099-R with the code R since it will be ignored by TurboTax - it's only purpose is to report to the IRS. You report the characterization with an explanation statement and IRA deduction or 8606, depending if it is deductible or not-deductible.

Enter the Roth contribution into the IRA contribution section and say that you changed your mind and moved (switched) it to a Traditional IRA (recharactorized). The amount recharacterized would be the amount of the Roth contribution that was moved - not any earnings. Enter an explanation statement of the amount recharactorized and earnings if any.

(A recharacterization of a contribution is treated as if the contribution had been made to the Traditional IRA in the first place and the earnings were earned in the Traditional IRA so be sure not to include the earnings in the amount recharactorized or the actual contribution amount will not be correct.)

If the recharacterized Traditional IRA contribution is deductible then it will be shown on line 32 on Schedule 1 on the 1040 form.

If not deductible it will create a 8606 form that will track the non-deductible basis of the non-deductible contribution.

You should receive a 1099-R next year with a code "R" in box 7. That only reports the recharacterization to the IRS and is ignored if entered into TurboTax.


Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.