IRA: Recharacterized Value Greater than Contribution

Ekt2ahQwRc — Mon, 23 Feb 2026 12:43:11 GMT

Hello!

I am having a bit of a problem reconciling this problem within TurboTax. In 2022, I received an unexpected bonus and realized I would exceed the MAGI for contributing to a Roth IRA.

I originally contributed $1,500. By the time I made the recharacterization to a Trad IRA later on, it had grown to $1,507. I have made the $7 withdrawal per TurboTax instructions, but I am unable to E-File due to the error on the "IRA Contributions Worksheet" as Line 22 "Recharacterizations" is greater than Line 19 "Contributions". Can I remedy this within TurboTax software or must I file by mail?

Thank You!

Re: IRA: Recharacterized Value Greater than Contribution

DanaB27 — Sun, 12 Feb 2023 17:40:21 GMT

If you recharacterized it you don't need to withdraw anything. Please follow these steps to enter the recharacterization in TurboTax:

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 “No” to “Is This a Repayment of a Retirement Distribution
Enter the Roth contribution amount of $1,500
Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount of $1,500 (no earnings or losses)
TurboTax will ask for an explanation statement where it should be stated that the original $1,500 plus $7.00 earnings were recharacterized.
On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" (if you are thinking about doing a backdoor Roth. 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)

You will get Form 1099-R for the recharacterization with code R-Recharacterized IRA contribution made for 2022 and this belongs on the 2022 return. But a Form 1099-R with code R will do nothing to your return. You can only report it as mentioned above. Therefore, you can ignore the Form 1099-R with code R when you get it in 2024. The box 1 on the 1099-R will report the total recharacterized amount (contribution plus earnings) but it does not separately report the earnings and box 2a must be zero.

topic IRA: Recharacterized Value Greater than Contribution in Retirement tax questions

IRA: Recharacterized Value Greater than Contribution

Re: IRA: Recharacterized Value Greater than Contribution