Question

Recharacterized ROTH IRA to traditional IRA in 2017. Have not completed 2017 amended return. Can I complete this just on 2018 return?

Forum|Forum|7 years ago
June 5, 2019
1 reply
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In 2017 I contributed $5,500 to ROTH IRA. While doing my 2017 taxes, my CPA advised me that my MAGI was too high and that I had to recharacterize the funds to a traditional IRA. I completed the recharacterization from ROTH to traditional IRA in February 2018; however, my CPA did not notify the government of this. My 2018 taxes are much simpler and I am completing in Turbotax. Can I take care of reporting this on my 2018 return?

I received a 1099 R showing $6,308.91 in box 1 and R in box 7. Do I report this in income? Do I also report this in the IRAs section, if so how? Do I need to amend my 2017 return as well or can this be completed just through my 2018 return? Thank you!

TurboTax Deluxe Online

D

dmertz

Employee

You need to amend your 2017 tax return. The resulting traditional IRA contribution needs to be reported either as a deductible contribution on 2017 Form 1040 line 32 or 2017 Form 1040A line 17, or as a nondeductible contribution on 2017 Form 8606. If your CPA should have done this, I suggest getting your CPA to prepare the amendment.

The code R 2018 Form 1099-R tells the IRS that you did a recharacterization. However, the information from this Form 1099-R is needed to explain the recharacterization with the details that $5,500 was recharacterized and the $5,500 plus $808.91 of earnings attributable to the $5,500 was transferred to the traditional IRA.