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Level 2
posted Feb 21, 2024 11:25:03 AM

1099-R

This year I have to do a N-Recharacterized IRA contribution made as I funded my ROTH IRA by mistake. The brokerage helped me to moved it to Rollover IRA account, thus when they issued a 1099-R form. When I imported that form into TurboTax, it did not pull the State Distribution amount.  On the form itself, the FATCA filing requirement is not checked, and no State Tax withheld and no State and Payer State number filled. But it has the amount on Line 16 State Distribution.

 

Should I fill Box 14 to 16 manually? 

 

Thank you. 

 

0 2 645
1 Best answer
Expert Alumni
Feb 22, 2024 3:33:47 AM

Generally, you enter Form 1099-R as shown but if you get an error then you can enter State and Payer State number (box 15) manually.

 

You will also need to report the recharacterization in IRA contribution section. 

 

You will enter the recharacterization when you enter the contribution to the Roth IRA:

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “IRA contributions” 
  3. Click on “Jump to IRA contributions"
  4. Select “Roth IRA”
  5. Answer ‘Yes” on the “Roth IRA Contribution” screen
  6. Answer “No” to “Is This a Repayment of a Retirement Distribution
  7. Enter the Roth contribution amount 
  8. Answer “Yes” to the recharacterized question on the “Switch from a Roth To a Traditional IRA?” screen and enter the contribution amount (no earnings or losses) on the next screen.
  9. TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
  10. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" if you are thinking about doing a backdoor Roth. Otherwise select "No". (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)

 

2 Replies
Expert Alumni
Feb 22, 2024 3:33:47 AM

Generally, you enter Form 1099-R as shown but if you get an error then you can enter State and Payer State number (box 15) manually.

 

You will also need to report the recharacterization in IRA contribution section. 

 

You will enter the recharacterization when you enter the contribution to the Roth IRA:

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “IRA contributions” 
  3. Click on “Jump to IRA contributions"
  4. Select “Roth IRA”
  5. Answer ‘Yes” on the “Roth IRA Contribution” screen
  6. Answer “No” to “Is This a Repayment of a Retirement Distribution
  7. Enter the Roth contribution amount 
  8. Answer “Yes” to the recharacterized question on the “Switch from a Roth To a Traditional IRA?” screen and enter the contribution amount (no earnings or losses) on the next screen.
  9. TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
  10. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" if you are thinking about doing a backdoor Roth. Otherwise select "No". (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)

 

Level 2
Feb 26, 2024 7:51:08 AM

Thank you, it is really helpful.