Form 8606

Forum|Forum|1 year ago
March 3, 2025
1 reply
1 view

Hello, question regarding 8606 form (all my contributions are nondeductible)

I received a 1099R form, code N for $205. The initial contribution ($200) and the recharacterization from a Roth to a traditional Ira were both done in 2024.

In addition, in 2024, I made $2,700 nondeductible, direct, contribution to my traditional IRA.

my question is, for line 1 on form 8606, what would my nondeductible contribution total be?

DanaB27

Level 15

Line 1 should be $2,900 ($2,700 direct nondeductible traditional IRA contributions + $200 from the recharacterization).

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

Login to your TurboTax Account
Click on "Search" on the top right and type “IRA contributions”
Click on “Jump to IRA contributions"
Select “Traditional IRA" & Roth IRA”
Enter your traditional IRA contributions of $2,700
Answer ‘Yes” on the “Roth IRA Contribution” screen
Answer “No” to “Is This a Repayment of a Retirement Distribution
Enter the Roth contribution amount of $200
Answer “Yes” to the recharacterized question on the “Switch from a Roth To a Traditional IRA?” screen and enter the contribution amount of $200 (no earnings or losses) on the next screen.
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.
On the screen "Choose Not to Deduct IRA Contributions" answer "Yes". 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.