Recharacterization and backdoor Roth

Darenl — Sun, 20 Apr 2025 14:13:37 GMT

I did some search and understood that TurboTax supports reporting recharacterization and backdoor conversion, but I would like to double check what I did specially is also supported:

March 2025: contributed directly $7000 to Roth IRA for year *2025*.

April 10 2025: called the custodian for recharacterization into TIRA. At the time of recharacterization there was 25 dollars earnings so total of $7025 was recharacterized. I then converted $7000 on this day to make it backdoor Roth. So that leaves $25 dollars in my TIRA account.

4/16/2025. I then realized that it would have been a mess if I leave the $25 in the TIRA so I converted the remaining $25 to Roth effectively empty out my TIRA.

I am assuming I will receive 3 1099R in 2026 for year 2025?

is reporting my above recharacterize and conversion supported in TurboTax? Specifically do the two conversions ($7000 first and then another $25) to Roth IRA make reporting complicated in anyway?

thank you

Re: Recharacterization and backdoor Roth

fanfare — Sun, 20 Apr 2025 14:36:37 GMT

" so total of $7025 was recharacterized. "

$7,000 was recharacterized. the original amount to the first IRA you report as contribution to the second IRA, earnings move but that is ignored.

You will get one 1099-R per account showing your total conversion(s) during the year.

to report a non-deductible contribution, Form 8606 must be attached.

If your IRA contribution is totally deductible take the deduction and pay tax on the whole conversion.

The final tax consequence is the same either way.

You will get a 1099-R for recharacterization but that can be discarded once you enter the Traditional IRA contribution of $7,000.

@Darenl

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Recharacterization and backdoor Roth

Re: Recharacterization and backdoor Roth