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Returning Member
posted Mar 30, 2018 8:53:33 PM

Recharacterizing Roth back to Traditional IRA doesn't seem to work

I need to recharacterize $18k (back to a Traditional IRA) of the $30k that I converted from a Traditional IRA to a Roth in 2017.

 

When I enter $18k in the field "Outstanding characterizations" on the "Tell Us the Value of Your Traditional IRA" page it reduces the amount of Tax Due by just a few dollars. When I modify the 1099-R form to be $18k less I get a much greater reduction in Tax Due, which is what I would expect. I would expect the same result when I enter $18k in the field "Outstanding characterizations".

 

Is there somewhere else in Turbotax that I should enter the amount that I want to recharacterize?

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1 Replies
Returning Member
Mar 31, 2018 2:32:45 PM

You have to go through the interview process ("Walk me through everything" and then select Update for "IRA, 401(k), Pension Plan Withdrawls (1099-R)" and not "I'll choose what I work on") to get to the page that asks "Move Funds?" with the choice of  "Did xxxxx move any part of the converted $30,000 from a Roth IRA to a traditional IRA? and answer "Yes, xxxxx moved some or all of the money back into a traditional IRA".

 

If you just go to "I'll choose what I work on" and select Update for "IRA, 401(k), Pension Plan Withdrawls (1099-R)", TurboTax will not display the "Move Funds?" page for some reason. After you go through the interview process again and enter the amount you want to recharacterize, then TurboTax will display the "Move Funds?" page the next time your select "I'll choose what I work on".