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Level 2
posted Mar 4, 2023 6:12:52 PM

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/01/1868847#M121305

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.

 

 

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3 Replies
Level 15
Mar 4, 2023 8:30:08 PM

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 

Level 15
Mar 4, 2023 8:38:50 PM

[[ /// ]]

Level 2
Mar 4, 2023 8:40:12 PM

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