I made a Roth IRA conversion of $20K from a traditional IRA on Dec. 5, 2019. Trying to avoid under-withholding of my taxes, I inadvertently asked to withhold $5.6K taxes (20% Federal & 8% State) at the time of the Roth conversion, causing my net converted Roth amount to only $14.4K ( I am eligible to withdraw). When I realized this mistake, I asked my brokerage to take $5.6K from my taxable account and put it in the Roth account. I was told that the recharacterization rule had been repealed, so they couldn't do what I asked.
However, TurboTax seems to show I could do it. Below is what I see in Turbotax:
TT : "What did you do with the money from xxx (my brokerage)?"
If I choose " I converted all the money into a Roth IRA".
TT: How much money did you actually deposit?
.... We see $5.6K was withheld from this distribution for taxes (per my 1099-R).
Did you deposit $5.6K from your own funds in addition to the $14.4K received from the distribution?
TT lets me select "Yes"
My questions are:
1) if TurboTax is correct that I could deposit $5.6K from my other account to the Roth account to make the converted Roth $20K total?
2) If yes to question #1, am I still within the window to put the $5.6K in the Roth account now?
Thanks so much.
