Gains from Roth to traditional recharacterization

telser — Wed, 15 Jul 2020 18:45:16 GMT

Hello,

I have recharacterized my 7,000 contribution that I made to my Roth IRA over to my traditional IRA and along with it went 1,100 in gains. Where do I enter the gains? Does it go in the Tubotax explanation box that says "The Amount Transferred (Recharacterization plus earnings or losses):? When I do that, the amount of taxes I owe does not change even though there was a gain. Shoudn't that go up? Don't I owe taxes on the 1,100 in gains for 2019?

Also, what line does the gain get entered on in the 8606? I had no other IRA activity other than the original Roth contribution and the recharacterization to my regular IRA.

Thank you very much.

Re: Gains from Roth to traditional recharacterization

macuser_22 — Wed, 15 Jul 2020 19:27:07 GMT

Yes, the only place the gains are reported is in the explanation statement. You did not withdraw the earnings, they were simply transferred from one type of IRA to the other so are in the other IRA as if earned there. Not taxable until finally distributed to you sometime in the future.

topic Gains from Roth to traditional recharacterization in Retirement tax questions

Gains from Roth to traditional recharacterization

Re: Gains from Roth to traditional recharacterization