Question

Undoing a “mistaken” Traditional IRA RE characterization - how to file? -

Forum|Forum|2 years ago
April 1, 2024
1 reply
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Hi,

I mistakenly recharacterized instead of converting my traditional IRA into Roth IRA, then my broker recharacterized the funds from Roth IRA back to traditional IRA within a few days (with a few $ less due to some basis/gain/loss calc that I don’t exactly understand, anyways). Should I just enter contribution to Traditional IRA in my tax return as if none of the recharacterizations happened? Even though I have two 1099-R forms - one in my Roth and one in my traditional IRA?

D

DanaB27

TurboTax has no way indicate a recharacterization of a recharacterization. Yes, you can enter this as contribution to Traditional IRA.

After you enter the 2023 Form 1099-Rs with codes N TurboTax will ask for the explanation of the recharacterization. You will state the original contribution $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized from traditional IRA to Roth IRA and then original contribution $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized from Roth IRA to traditional IRA.

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