Reporting a recharacterization fixing a erroneous recharacterization

user17577855205 — Sat, 13 Sep 2025 17:56:12 GMT

Hi,

I performed a qualified 529 to ROTH rollover in 2024 but when I went to do my taxes I attempted to tell TurboTax that I had made a 7000 dollar contribution to a ROTH IRA which TurboTax flagged because I am over the income limit to contribute to a ROTH. This, and conflicting resources on the internet, led me to re-characterize the entire 7000 rollover amount to a traditional IRA. I realized that was a mistake, my understanding is that the income limits do not apply for a qualified 529 to ROTH rollover, I filed an extension, and re-characterized the entire amount now in the Traditional IRA back to a ROTH. I'm now at a loss as to how to express this correctly on my return in TurboTax and I'm hoping the community can give me some guidance. Do I need to report only the re-characterizations and not the rollover on my return? How do I report two re-characterizations and describe the situation above satisfactorily for when my return is reviewed? Is there some way to report the rollover as a qualified 529 to ROTH rollover?

Thank you very much in advance for any help, I normally enjoy filing my taxes and I'm looking forward to having this done correctly.

Re: Reporting a recharacterization fixing a erroneous recharacterization

AmeliesUncle — Sat, 13 Sep 2025 20:41:40 GMT

Nothing needs to be reported for a 529 to Roth.

Just keep track of the paperwork/records in case the IRS were to ever ask about it.

If the recharacterizations ended up as a Roth, none of that should matter. In the event you receive any 1099-Rs for 2025, you may need to deal with some IRS notices, but the finality of things is that nothing is really reportable.

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Reporting a recharacterization fixing a erroneous recharacterization

Re: Reporting a recharacterization fixing a erroneous recharacterization