topic Recharacterization of Traditional Non Deductible IRA to Roth IRA at a Loss in Get your taxes done using TurboTax

Recharacterization of Traditional Non Deductible IRA to Roth IRA at a Loss

APVP — Mon, 23 Feb 2026 10:16:14 GMT

I contributed $7,000 in 2022 to Traditional Non Deductible IRA. By the time I recharacterized it to Roth IRA, its value dropped to $5,800. How I understand, I should be able to recognize the loss of $1,200, but TurboTax considers $1,200 as the balance of Traditional IRA. How should I enter data in TurboTax to see the loss? Thank you.

Re: Recharacterization of Traditional Non Deductible IRA to Roth IRA at a Loss

dmertz — Wed, 25 Jan 2023 13:03:14 GMT

The Tax Cuts and Jobs Act of 2017 eliminated this deduction through 2025.

Re: Recharacterization of Traditional Non Deductible IRA to Roth IRA at a Loss

APVP — Wed, 25 Jan 2023 19:04:59 GMT

Thank you for the reply. I am reading Tax Cuts and Jobs Act and cannot find information about recharacterization. Could you please post that rule? Thanks again.

Re: Recharacterization of Traditional Non Deductible IRA to Roth IRA at a Loss

dmertz — Wed, 25 Jan 2023 21:54:48 GMT

This would have to be claimed as a miscellaneous deduction subject to the 2%-of-AGI floor, but the TCJA eliminated this deduction for 2018 through 2025.

See section 67(g): https://www.law.cornell.edu/uscode/text/26/67

Re: Recharacterization of Traditional Non Deductible IRA to Roth IRA at a Loss

APVP — Wed, 25 Jan 2023 23:39:41 GMT

Got it! Thank you so much.