topic Correcting 2023 Excess Roth IRA in Get your taxes done using TurboTax

Correcting 2023 Excess Roth IRA

hxtudou — Tue, 10 Feb 2026 11:17:53 GMT

Hello:

Doing 2023 tax return. Realize that I over-contributed to Roth IRA. Explore option to correct it.

One option is to recharacterize the Roth IRA contribution to traditional IRA. I am using Fidelity: https://www.fidelity.com/retirement-ira/recharacterize

If I do it in 2024, according to Fidelity I think I will get tax forms in 2025:

1) 2024 IRS 1099-R form for recharacterizing prior year 2023 tax contribution (code R)
2) 2024 IRS 5498 form with box 4 recharacterized contribution to the receiving IRA.

Seems not in time for the 2023 filing before April 15. So I think:

1) For 2023 I assume still need to pay the 6% penalty for now? Correct me if I am wrong.

2) After I get the 2024 tax forms in 2025, I will need to amend 2023 tax return with the recharacterization. This would remove the 6% penalty.

Questions on how to enter things in TurboTax:

1) How do I report the recharacterization in my 2023 tax return? Detailed steps appreciated.

2) Do I need to enter anything from the 5498 form in my 2023 tax return?

Re: Correcting 2023 Excess Roth IRA

hxtudou — Mon, 19 Feb 2024 13:29:39 GMT

Looking through some similar post:

https://ttlc.intuit.com/community/retirement/discussion/roth-ira-2020-contribution-recharacterized-and-converted-in-2021-backdoor-1099-r-received-in-2022/01/2465088#M163552

Seems similar situation in which exceed in 2020 and recharacterize in 2021. I am exceeding in 2023 and recharacterize in 2024.

In 2022, that person get 1099-R for the 2021 recharacterizing of prior 2020 contribution.

However, person reported the recharacterization in his 2020 tax return (etc before he got the 1099-R things in 2022).

So reading from his post, seems I don't need to wait for the 1099-R forms? Can just report the recharacterization now in my return?

The thing I am unsure about is whether report recharacterization now or amend later.

Recharacterizing a prior year contribution is a little bit confusing on how to report.

Hope some expert can clarify.

Re: Correcting 2023 Excess Roth IRA

hxtudou — Tue, 20 Feb 2024 13:13:31 GMT

https://ttlc.intuit.com/community/retirement/discussion/reporting-ira-recharacterization-when-form-1099-r-not-available-yet/00/2609472

https://ttlc.intuit.com/community/retirement/discussion/2019-return-reporting-recharacterization-completed-in-2020/00/1190549

Found these helpful. Reporting recharacterization when 1099 not yet available.

Re: Correcting 2023 Excess Roth IRA

DanaB27 — Wed, 21 Feb 2024 11:55:01 GMT

Yes, you can report the recharacterization now on your 2023 return, you do not have to wait for the Form 1099-R.

No, you won't have to pay the 6% penalty. When you recharacterize the Roth IRA contribution this will fix the excess contribution.

You will enter the recharacterization when you enter the contribution to the Roth IRA:

Login to your TurboTax Account
Click on "Search" on the top right and type “IRA contributions”
Click on “Jump to IRA contributions"
Select “Roth IRA”
Answer ‘Yes” on the “Roth IRA Contribution” screen
Answer “No” to “Is This a Repayment of a Retirement Distribution
Enter the Roth contribution amount
Answer “Yes” to the recharacterized question on the “Switch from a Roth To a Traditional IRA?” screen and enter the contribution amount (no earnings or losses) on the next screen.
TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" if you are thinking about doing a backdoor Roth. Otherwise select "No". (If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible)

You will get a 2024 Form 1099-R for the recharacterization with code R-Recharacterized IRA contribution made for 2023 and this belongs on the 2023 return. But a Form 1099-R with code R will do nothing to your return. You can only report it as mentioned above. Therefore, you can ignore the Form 1099-R with code R when you get it in 2025.

Please see What happens if I made an excess Roth IRA contribution for additional information.