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posted Mar 20, 2024 1:54:10 PM

Code R on 1099-R

I recieved a 1099-R with Code R for 2023 tax year.

 

I found that code R means that "Over contribution in 2022 was recharacterized in 2023".

 

I do not believe I reported anything about this on my 2022 tax return. When I did the recharacterization with the investment firm, they told me I didn't need to file anything about it on my tax return that year, so I didn't. Do I need to ammend my 2022 tax return with the Form 8606 explaining the recharacterization, along with the form 1099-R from 2023? Or do I put the 1099-R into this years (2023) tax return?

 

I'm really confused on how this is supposed to be filled out. 

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1 Replies
Expert Alumni
Mar 26, 2024 1:56:03 PM

Correct, you do not enter the 2023 Form 1099-R with code R on your 2023 tax return. 

 

A 2023 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 below. Therefore, you can ignore the Form 1099-R with code R.

 

Please check if you used the steps below on your 2022 tax return to report the recharacterization. If not then you will have to amend your 2022 tax return.

 

You will enter the recharacterization when you enter the contribution to the Roth IRA on your 2022 return:

 

  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)