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Do I need fill form 8606 if a non-deductible->Roth->Traditional recharacterization?

Forum|Forum|7 years ago
June 6, 2019
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Best answer by dmertz

If you recharacterized the entire amount that was converted to Roth, you don't need Form 8606 to calculate the taxable amount of the Roth conversion since the Roth conversion is treated as not having happened. However, if you did only a partial recharacterization, Form 8606 will be needed to calculate the taxable amount of the portion that remained converted to Roth.

If your traditional IRA includes nondeductible contributions made for the current tax year, you must file Form 8606 whether you do any Roth conversion or not since the contribution adds to your basis and must be reported.

TurboTax takes care of all of this automatically when you enter the traditional IRA contribution, the Form 1099-R for the distribution converted to Roth, and your answers to the follow-up questions where you'll indicate the portion of the Roth conversion that you recharacterized back to a traditional IRA.

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dmertzAnswer

Employee

If you recharacterized the entire amount that was converted to Roth, you don't need Form 8606 to calculate the taxable amount of the Roth conversion since the Roth conversion is treated as not having happened. However, if you did only a partial recharacterization, Form 8606 will be needed to calculate the taxable amount of the portion that remained converted to Roth.

If your traditional IRA includes nondeductible contributions made for the current tax year, you must file Form 8606 whether you do any Roth conversion or not since the contribution adds to your basis and must be reported.

TurboTax takes care of all of this automatically when you enter the traditional IRA contribution, the Form 1099-R for the distribution converted to Roth, and your answers to the follow-up questions where you'll indicate the portion of the Roth conversion that you recharacterized back to a traditional IRA.

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seshasaikAuthor

Thank you, this was for Fy2015. I had opened it initially as non-deductible then used backdoor option to ROTH and then I realized my wife was eligible for deduction at the time of filing, so re-characterized the entire amount. I was using Turbotax until 2014 and in 2015 I went to a tax professional. We forgot to submit for 8606 for me and We did send it afterwards. Just want to make sure if this form is needed for my wife.