3630067
Hi!
In 2024, I was looking to do a backdoor Roth in Vanguard but I made a huge mistake - I accidentally opened a RothIRA and contributed $7000 to it (my income is over the limit), when I meant to open a traditional IRA to then backdoor into a Roth.
I believe I ended up recharacterizing the RothIRA to a traditional IRA. Then I made a new empty RothIRA and I completed the backdoor.
Unfortunately, this makes my tax filing for 2024 a bit messier. My question is - how would I go about filing my taxes with this recharacterization on Turbotax? A million thank yous for your help!!!
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recharacterization: the original amount to the first IRA you report as contribution to the second IRA, earnings move but that is ignored.
You must use a trustee-to-trustee transfer before the due date April 15,2025 ( or Oct 15, 2025 if 1040 was timely filed or extended).
You will instruct trustee to calculate the allocable earnings.
report this on your tax return for the year during which the contribution was made.
Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA.
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Upon reporting a Trad IRA contribution (non-deductible) on your tax return, you can then also report a Roth conversion of the contributed amount for net tax of zero, unless your IRA previously had value exceeding basis.
In that case, it can't be done tax free.
to report a non-deductible contribution, Form 8606 must be attached.
If you converted in 2025, report conversion on your 2025 tax return.
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