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Where to enter IRA recharacterizations in TurboTax Premier
Old 12-24-2020, 11:07 AM   #1
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Where to enter IRA recharacterizations in TurboTax Premier

I downloaded the 2020 tax year TurboTax and went through a preliminary Fed tax entry up to the ready to file tab. I didnít see anywhere specifically where to enter my $14,000 (same Institution-Fido) IRA re- characterization from my Fido tIRA to my ROTH IRA account. Can someone guide me on how this is done? I intended to see if I can convert more within the 12% bracket.
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Old 12-24-2020, 11:47 AM   #2
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Try this:

https://ttlc.intuit.com/community/ta...ons/00/1308109
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Old 12-24-2020, 12:02 PM   #3
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Originally Posted by Al in Ohio View Post
I downloaded the 2020 tax year TurboTax and went through a preliminary Fed tax entry up to the ready to file tab. I didnít see anywhere specifically where to enter my $14,000 (same Institution-Fido) IRA re- characterization from my Fido tIRA to my ROTH IRA account. Can someone guide me on how this is done? I intended to see if I can convert more within the 12% bracket.
That's just a straight conversion, not a recharacterization. It would be a recharacterization if you put it back in the tIRA in the same year you converted it.

You enter it in the interview under Federal Taxes / Wages & Income / Retirement Plans and Social Security / IRA, 401(k), Pension Plan Withdrawals (1099-R). Enter a 1099-R, putting $14,000 in boxes 1 and 2, check the box for taxable amount not determined, enter code 2 in box 7 and check the IRA/SEP/SIMPLE box.

Answer "no" to the question about inheritance and then when you get to "What Did you Do With The Money From This Payer?" select "... moved the money to another retirement account..." and "... converted all of this money to a Roth IRA..."
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Old 12-24-2020, 12:06 PM   #4
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Do I understand correctly that you are wanting to enter a Roth "Conversion" (not a recharacterization) in TT and then increase the amount of that conversion? It sounds unclear the way I read your post.
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Old 12-24-2020, 12:40 PM   #5
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Originally Posted by cathy63 View Post
That's just a straight conversion, not a recharacterization. It would be a recharacterization if you put it back in the tIRA in the same year you converted it.



You enter it in the interview under Federal Taxes / Wages & Income / Retirement Plans and Social Security / IRA, 401(k), Pension Plan Withdrawals (1099-R). Enter a 1099-R, putting $14,000 in boxes 1 and 2, check the box for taxable amount not determined, enter code 2 in box 7 and check the IRA/SEP/SIMPLE box.



Answer "no" to the question about inheritance and then when you get to "What Did you Do With The Money From This Payer?" select "... moved the money to another retirement account..." and "... converted all of this money to a Roth IRA..."


That did it for me. Thank you!
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Old 12-24-2020, 01:31 PM   #6
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Do I understand correctly that you are wanting to enter a Roth "Conversion" (not a recharacterization) in TT and then increase the amount of that conversion? It sounds unclear the way I read your post.
No, I think he is talking about converting (or recharacterizing) current year 2020 tIRA contributions to Roth contributions. He contributed $14k into his/her tIRAs earlier in the year and then later decided that he would rather have them in their Roth.

That's my interpretation anyway.
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Old 12-24-2020, 01:40 PM   #7
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Do I understand correctly that you are wanting to enter a Roth "Conversion" (not a recharacterization) in TT and then increase the amount of that conversion? It sounds unclear the way I read your post.


You are Correct
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Old 12-24-2020, 01:42 PM   #8
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Originally Posted by pb4uski View Post
No, I think he is talking about converting (or recharacterizing) current year 2020 tIRA contributions to Roth contributions. He contributed $14k into his/her tIRAs earlier in the year and then later decided that he would rather have them in their Roth.

That's my interpretation anyway.


Actually I contributed to an SEP IRA years ago and converted this year to my ROTH account.
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Old 12-24-2020, 01:50 PM   #9
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You are Correct
You now know how to enter the Roth conversion in TT. Thanks Cathy63. In order to increase the Roth conversion you already did, You cannot increase that conversion amount. You should be able to make an 2nd Roth Conversion in the amount of the desired increase.
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