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gg96
Level 2

What is "Tell Us How Much You Transferred" for Roth IRA if you have Recharacterization? Does it include earnings or losses for the amount?

Steps I took:

  1. Click Federal > Deductions & Credits on the left panel
  2. Roth IRA box? Checked
  3. Is This a Repayment of a Retirement Distribution? NO
  4. Enter Your Roth IRA Contributions: 6000
  5. Tell Us How Much You Transferred: Since I did full $6000 recharacterization from Roth to Traditional, is this total amount including earnings & loss? OR 6000? 
  6. Roth IRA Explanation Statement: The "Transferred" definition within the template of this page is "Recharacterization plus earnings or losses".

So, I'm a very confused! If I were to put the amount including earnings & losses (5000) for Tell Us How Much You Transferred for Step 5, the next page will show that I have Excess Contribution of $1000 even though I did recharacterization to Traditional IRA for my $6000 Roth IRA Contribution at a loss last year due to the economic downturn :(

 

https://ttlc.intuit.com/community/retirement/discussion/report-recharacterization-of-roth-ira/01/186...

Bullet #7 by DanaB27 on ‎March 20, 2021 5:00 AM on above post says Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount $6,000 (no earnings or losses). I have not seen this question at all within the online platform.

 

 

Screenshot 2023-03-04 at 8.53.35 PM.jpg

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3 Replies

What is "Tell Us How Much You Transferred" for Roth IRA if you have Recharacterization? Does it include earnings or losses for the amount?

If I were to put the amount including earnings & losses (5000) for Tell Us How Much You Transferred for Step 5, the next page will show that I have Excess Contribution of $1000 even though I did recharacterization to Traditional IRA for my $6000 Roth IRA Contribution"

 

Exactly ,

That's why you have to enter $6,000, which is the amount you recharacterized.

 

@gg96 

What is "Tell Us How Much You Transferred" for Roth IRA if you have Recharacterization? Does it include earnings or losses for the amount?

[[ /// ]]

gg96
Level 2

What is "Tell Us How Much You Transferred" for Roth IRA if you have Recharacterization? Does it include earnings or losses for the amount?

Thank you for the confirmation! The Turbotax advisor was telling me to put $5000, and was selling me to get in a call with CPA on live Premier to potentially fix the excess contribution. Glad I wasn’t in a rush, and find out about it

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