topic Roth overpayment and recharacterization in Retirement tax questions

Roth overpayment and recharacterization

NickC2 — Wed, 03 Mar 2021 01:29:29 GMT

Doing my 2020 taxes I realized that my AGI was too high to make the Roth payments I had already made in 2020. I had my brokerage recharacterize the payment and gains into a non deductible IRA but i'm not sure how to declare the gains I made , I presume these are declared as income but when going through this section on Turbo Tax I wasn't asked.

Re: Roth overpayment and recharacterization

fanfare — Wed, 03 Mar 2021 01:40:22 GMT

what you recharacterized is the original amount you put in.

your gain is shown as a taxable amount on the 1099-R you get.

Re: Roth overpayment and recharacterization

NickC2 — Wed, 03 Mar 2021 01:57:03 GMT

ok, when do I get the 1099-R ? Would that be in 2022 ?

So the excess can just sit in the IRA and i'll pay tax on the gains at some point?

Re: Roth overpayment and recharacterization

NickC2 — Wed, 03 Mar 2021 18:33:11 GMT

ok, when do I get the 1099-R ? Would that be in 2022 ?

So the excess can just sit in the IRA and i'll pay tax on the gains at some point?