Where to enter IRA recharacterizations in TurboTax Premier

[Al in Ohio]

I downloaded the 2020 tax year TurboTax and went through a preliminary Fed tax entry up to the ready to file tab. I didn’t 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.

 

[pb4uski]

Try this:

https://ttlc.intuit.com/community/t...echaracterization-tax-instructions/00/1308109

 

[cathy63]

I downloaded the 2020 tax year TurboTax and went through a preliminary Fed tax entry up to the ready to file tab. I didn’t 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..."

 

[CRLLS]

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.

 

[Al in Ohio]

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!

 

[pb4uski]

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.

 

[Al in Ohio]

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

 

[Al in Ohio]

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.

 

[CRLLS]

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.