How to report recharacterized IRA contribution? [solved]

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gavinsiu
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Joined: Sun Nov 14, 2021 11:42 am

How to report recharacterized IRA contribution? [solved]

Post by gavinsiu »

So Last year, I contributed to a Roth IRA, then immediately realized I am above the income limit and then recharacterized it as non-deductive traditional and then reconvert it back to Roth as a backdoor roth. How do I report this on my taxes? Do I report this as excess IRA contribution or does the recharacterization essentially erase the excess contribution. Thanks!
Last edited by gavinsiu on Sun Feb 11, 2024 10:25 am, edited 1 time in total.
mhalley
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Re: How to report recharacterized IRA contribution?

Post by mhalley »

The recharacterization fixed the over contribution. You report the backdoor Roth on form 8606.
Topic Author
gavinsiu
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Re: How to report recharacterized IRA contribution?

Post by gavinsiu »

mhalley wrote: Sun Feb 11, 2024 10:11 am The recharacterization fixed the over contribution. You report the backdoor Roth on form 8606.
Thanks, I don't think I ever done a recharacterization in the past, so thank you for the clarification.
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retiredjg
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Re: How to report recharacterized IRA contribution? [solved]

Post by retiredjg »

I think there may be a little more to it than that, but it depends on what your 1099's say. You may have to show that you made the contribution to Roth and recharacterized it and then converted it. See....

viewtopic.php?t=398335
little_star
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Re: How to report recharacterized IRA contribution? [solved]

Post by little_star »

gavinsiu wrote: Sun Feb 11, 2024 10:10 am So Last year, I contributed to a Roth IRA, then immediately realized I am above the income limit and then recharacterized it as non-deductive traditional and then reconvert it back to Roth as a backdoor roth. How do I report this on my taxes? Do I report this as excess IRA contribution or does the recharacterization essentially erase the excess contribution. Thanks!
You document your non-deductible contribution on IRS Form 8606. You also need to include a brief statement regarding the recharacterization along the lines of "I contributed $X to a Roth IRA on [Date1]. I recharacterized the entire contribution on [Date2] at a value of $Y." Note that the value on line 1 of IRS Form 8606 is the value of the original contribution ($X in the previous sentence).
Topic Author
gavinsiu
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Re: How to report recharacterized IRA contribution? [solved]

Post by gavinsiu »

retiredjg wrote: Sun Feb 11, 2024 10:36 am I think there may be a little more to it than that, but it depends on what your 1099's say. You may have to show that you made the contribution to Roth and recharacterized it and then converted it. See....

viewtopic.php?t=398335
The 1099 said that it was recharacterized from Roth.
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