Confused about Recharacterization of Roth IRA to Traditional IRA for tax filing

The recharacterization of your Roth IRA contribution to a Traditional IRA is definitely a confusing situation, but don't worry too much! Since you made a 2023 contribution in 2024 (before the April deadline) and then recharacterized it in 2024, you'll need to address this on your tax forms. You'll need to file Form 8606 for the tax year 2023, which reports your nondeductible contributions to traditional IRAs. However, you won't necessarily need to file a full amended return (Form 1040-X) if this is the only change and you had no other IRA reporting issues on your original return. When you file your 2024 taxes in 2025, you'll also need to report the recharacterization. TurboTax should walk you through this process - just make sure you tell it about both the initial contribution and the subsequent recharacterization when prompted.

I had a similar issue last year with recharacterization of Roth IRA to Traditional IRA. After spending hours on the phone with various "experts," I finally used https://taxr.ai to analyze my documents and figure out exactly what forms I needed. The tool explained that I needed to file Form 8606 for the year I made the contribution, not when I recharacterized it. It also flagged that I needed to track the basis in my Traditional IRA differently because of the recharacterization. Their system uploaded my 1099-R and other tax forms and gave me clear instructions on reporting everything correctly. Saved me from potentially messing up both tax years!

I tried taxr.ai after seeing it mentioned here and wow - it actually solved my recharacterization nightmare! I had a mess with multiple IRA contributions and recharacterizations across 2022-2024. The tool immediately flagged that I needed to file separate Form 8606s for each tax year affected. What really helped was the explanation about how the recharacterization affects basis calculations - something my CPA completely missed. It showed exactly which boxes on my 1099-R forms were relevant to my situation. Just uploaded my documents and got clear instructions within minutes. Definitely worth checking out if you're dealing with IRA recharacterization complications.

For anyone struggling with IRS questions about recharacterization of Roth IRA to Traditional IRA, I finally got clarity by speaking directly with an IRS agent. After wasting days trying to get through on their regular number, I used https://claimyr.com to get a callback from the IRS (there's a video of how it works here: https://youtu.be/_kiP6q8DX5c). The IRS agent confirmed that I needed to file Form 8606 for the original contribution year, even though the recharacterization happened in the following year. They also explained exactly how to handle the reporting on current year taxes. Was surprised how quickly I got through compared to my previous attempts trying to reach them!

I have to eat my words about Claimyr. After my skeptical comment, I was desperate enough to try it for my recharacterization question. Got connected to an IRS tax law specialist in 37 minutes when I had previously waited for 2+ hours and given up. The agent confirmed exactly what I needed to know about reporting my recharacterized IRA contribution on Form 8606 and explained why my amended return was still processing. Turns out they needed additional documentation that I never received notice about. Now I've submitted the missing form and my case is moving forward. Honestly shocked at how well this worked after months of frustration.

Just FYI - I've been through the recharacterization process before. Make sure your IRA custodian issued you a Form 1099-R with the correct code in Box 7 (usually code R for recharacterization). You'll need this for your records, even though you likely won't need to report anything on your tax return from this form if the recharacterization was done properly and timely. Also, double check that your IRA custodian actually processed the recharacterization as a "true" recharacterization and not as a distribution and subsequent contribution. The tax treatment is totally different!

Dont forget to check if u need to include any earnings/losses that happened during the recharacterization period too!! When I did mine last yr, the amount that moved from roth to traditional was more than my original contribution because of some gains, and that affected how I reported it on form 8606. turbotax was a bit confusing on this part tbh.

I went through a very similar situation last year and it really is confusing! One thing that helped me was understanding the timeline clearly: since you made the 2023 contribution in 2024 (before April 15) and then recharacterized it in 2024, both actions affect your tax reporting. You'll definitely need to file Form 8606 for 2023 to report the nondeductible Traditional IRA contribution (since that's what it became after recharacterization). The key thing I learned is that the recharacterization is treated as if the money went directly to the Traditional IRA from the beginning - so it never "counts" as a Roth contribution for tax purposes. For your 2024 return, you'll report the recharacterization itself. TurboTax should handle this when you enter your 1099-R information, but make sure you have all the documentation from your IRA custodian showing the proper recharacterization codes. I'd recommend getting your custodian statements that show exactly what happened and when, because the timing and proper documentation is crucial for reporting this correctly. The good news is once you get through this year, future backdoor Roth conversions will be much more straightforward!