topic Re: Roth Recharaterization in Get your taxes done using TurboTax

Roth Recharaterization

bmwsabina — Thu, 03 Apr 2025 12:48:08 GMT

I contributed to Roth IRA on 2/15 by accident , I meant to contribute to traditional IRA and didn't realize it till 3/31when I tried to do my taxes, I reached out to a retirement platform support and submitted a Roth recharacterization to traditional IRA. Once it's completed, how should I complete the retirement section in Turbo tax? it's confusing to me and I don't want to make a mistake. Can an expert walk me through step by step on how to complete the turbo tax home and business? Thanks for your help in advance. SL

Re: Roth Recharaterization

DaveF1006 — Thu, 03 Apr 2025 13:02:08 GMT

Yes, once your characterization is complete, you will need to amend your 2024 return. I will give you the steps on how to amend and how to report the characterization. First, how to amend:

To amend your return using Turbo Tax Online.

Log into Turbo Tax
Select Scroll down Your tax returns & documents in your landing page.
Select Amend (change) 2024 return.

To amend using the 2024 Desktop Software, go to:

Federal Taxes
Other Tax Situations>other tax forms
Amend a return

Once you begin the amend process, here is how to report the characterization.

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).

If you need further assistance, you reach out again or contact Turbo Tax live help here.

Re: Roth Recharaterization

bmwsabina — Thu, 03 Apr 2025 13:18:20 GMT

Hi DaveF1006, Thank you!, I haven't filed my taxes yet, I am waiting for the recharacterization to complete and file my tax before 4/15/25, will the steps you mentioned stay the same? Thanks again for your help, I really appreciate the help. Sabina

Re: Roth Recharaterization

DaveF1006 — Thu, 03 Apr 2025 13:27:14 GMT

Yes, the steps will remain the same.

Re: Roth Recharaterization

bmwsabina — Thu, 03 Apr 2025 13:31:33 GMT

Thank you!

Re: Roth Recharaterization

fanfare — Thu, 03 Apr 2025 13:37:05 GMT

recharacterization: the original amount to the first IRA you report as contribution to the second IRA, earnings move but that is ignored.

HOW TO REPORT.

Tell TurboTax you made a Traditional IRA contribution. It is that simple.

If you plan to convert later, you want to make your contribution non-deductible.

Form 8606 will be attached. If it is already non-deductible due to income, that's automatic

Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA.

Forget all the baloney advice you get from the EXPERTS.

@bmwsabina