1099R for ROTH Recharacterization

[hsingh1969]

Hello, 

I received a 1099-R for a ROTH recharacterization that was done during tax year 2024, and after entering this information into my 2025 taxes Turbotax is advising that my 2024 taxes may need to be amended.  However, there is no information about the amendment that is required. Could this instruction from Turbotax be incorrect, if not how can I determine what amendment is required?  My 2024 taxes were accepted by the IRS.                 

[baldietax]

did you enter the re-characterization when you did your 2024 taxes?  The correction will be to record the contribution correctly if not done (e.g. Roth to Trad IRA as a non-deductible contribution should generate Form 8606 to record the correct basis).  If you did, I don't think you need to do anything.  The 1099-R itself presumably has a code "R" and has no effect on your return, but Turbotax is giving you a general notification after inputting the 1099-R that you need to check your previous return.

[hsingh1969]

Hello, 

Thank you for your response. Yes, I did enter the recharacterization in my 2024 taxes. Is the Form 8606 automatically generated by Turbotax or is this an IRS form that must be completed and submitted separately? l looked at my 2024 tax forms in Turboxtax and couldn't see this form.

[DaveF1006]

Please  check your 2024 tax return (the one already filed) to see if you claimed a "Deduction for IRA Contributions" on Schedule 1, Line 20? This will tell us if the recharacterization was recorded as deductible or nondeductible.

If it was recorded as a deductible contribution, then no 8606 was generated. In answer to your question, TurboTax will generate an 8606 if it is needed to report a non-deductible contribution.