When do I submit 1099-R Form?

[sandman14]

Hello Tax Experts,

For the 2022 tax year, I contributed to my Roth IRA early in the year and by the end of 2022 had too high of a MAGI to have put in that contribution. I've already recharacterized the Roth IRA contribution to a Traditional IRA.

The question is when do I submit the 1099-R form? I'm really hoping I submit it when I file my 2022 tax return (working on that now). I really appreciate any guidance on the best way to handle this so I can file my taxes for this season.

Thanks

[DanaB27]

You will enter the recharacterization when you enter the contribution to the Roth IRA on your 2022 tax 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 “No” to “Is This a Repayment of a Retirement Distribution
6. Enter the Roth contribution amount 
7. Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount (no earnings or losses)
8. 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.
9. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" (if you are thinking about doing a backdoor Roth. 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)

You will get 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 above. Therefore, you can ignore Form 1099-R with code R when you get it in 2024. The box 1 on the 1099-R will report the total recharacterized amount (contribution plus earnings) but it does not separately report the earnings and box 2a must be zero.

[sandman14]

Very helpful. To confirm, submitting the recharacterization would be included on my 2022 tax return (I hope). I heard that it may have to be submitted when the recharacterization took place, in 2023, so on my 2023 return next year.

[ThomasM125]

You would report the recharacterization on your 2022 tax return, since that is when you made the original contribution, provided you did the recharacterization before the due date of your 2022 tax return.

[sandman14]

I'm curious, where do you receive the 1099-R form? The financial institution that my IRAs are with?

[MarilynG1]

Yes, you should receive a 1099-R from the financial institution managing your IRA accounts.

Here's more detailed info on Form 1099-R. 

@sandman14 

[Critter-3]

1099-R forms are issued by the custodian of the IRA account. 

[sandman14]

I agree. I called my financial institution and they confirmed I will not be receiving that 1099-R form until early 2024 when tax forms are released for tax year 2023.

So I'm a bit confused, how can I report this recharacterization on my 2022 taxes when I won't have that form to submit?

[sandman14]

What TurboTax product will I need to use with this recharacterization being included?