Question

recharacterization

Forum|Forum|1 year ago
March 21, 2025
1 reply
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last year 2023 I recharacterized my Roth contributions to be Traditional IRA in order to take the deduction. I waited a few days to get the exact amount of earnings, it's only $18.79, and enter the exact Recharacterization amount Explanation statement as this board advised, i.e.

Date of Original Contribution: 3/11/2024. Date of the Recharacterization: 3/25/2024. The Amount Recharacterized: $6500. The Amount Transferred (Recharacterization plus earnings or losses): $6518.79. Reason for the Recharacterization: Take deduction. Original contribution $6500 plus $18.79 earnings.

I got a 1099-R of the recharacterization. When I use Turbotax 2024 to file this year tax. I entered that 1099-R, TurboxTax asked if it's for 2023 or 2024. I clicked on 2023. Turbotax then gave me message that I need to file amendment for 2023. When I opened the TurboTax 2023 to go thru the amendment and enter the same 1099-R, Selected for 2023, then TurboTax went thru the program then gave message that Your tax amount is no change. Are you sure you want to amend?

What do I do now? I'm confused, and regretted I did that recharacterization last year.

D

DanaB27

You do not need to amend your return since you reported the recharacterization when you originally filed your 2023 return. You can only report it in the IRA contribution interview.

A Form 1099-R with code R will change nothing on your return. Therefore, you can ignore the Form 1099-R with code R.

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