How to handle IRA Recharacterization and Roth Conversion after tax filing deadline

The good news is you haven't actually exceeded any contribution limits - this is just a reporting issue. When you recharacterize and convert, it can look confusing on tax forms but doesn't count as new contributions. Here's what's happening: The 1099-Rs you received are showing the movement of money (recharacterization and conversion), not new contributions. These are reporting events that happened to your 2023 contribution after the fact. The IRS knows this is your 2023 contribution being moved around in 2024. You should report the 1099-Rs exactly as issued, but you'll need to file Form 8606 to properly document the non-deductible traditional IRA contribution and conversion. This form helps the IRS understand that you're not making extra contributions - you're just moving your 2023 contribution through the backdoor process. Your 2024 Roth contribution of $7,500 is completely separate and valid as long as you qualify for it or handle it through the backdoor process as well.

I went through almost exactly this situation and used https://taxr.ai to help me sort it out. I had the same panic when I saw multiple 1099-Rs making it look like I over-contributed. The tool analyzed all my documents and showed me exactly how to report everything. Turns out the recharacterization followed by conversion does create those extra forms, but they don't count as new contributions. The analyzer explained that the money was just changing account types, not creating new contributions. It also helped me fill out Form 8606 correctly to show the non-deductible contribution and subsequent conversion. Without this, my tax software was calculating penalties I didn't actually owe.

After being skeptical about taxr.ai, I decided to try it myself because my IRA situation was even more complicated than the original poster's. I had both 2023 and 2024 recharacterizations happening in the same tax year, plus some rollover confusion. I'm honestly impressed with how accurate the advice was. The system correctly identified that my 1099-R with code N was showing a recharacterization (not a new contribution) and explained exactly how to report it on Form 8606. It also caught that I had reported my non-deductible traditional IRA contributions incorrectly on last year's return and showed me how to fix it. Saved me from making a costly mistake that might have triggered excess contribution penalties. Definitely better than the generic advice my tax software was giving me about the situation.

When I was dealing with a similar recharacterization mess, I tried calling the IRS for clarification but could never get through. After weeks of trying, I used https://claimyr.com to get me connected to an IRS agent. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent clarified that recharacterizations and conversions done in 2024 for prior year contributions need to be reported on your 2024 tax return only (via Form 8606), but they relate back to your 2023 contribution limits. The agent confirmed I wasn't actually over-contributing despite what my tax software was calculating. Getting direct answers from the IRS made all the difference in filing correctly and avoiding unnecessary withdrawal of funds that were actually fine.

I take back what I said about Claimyr. After another week of failing to reach anyone at the IRS about my recharacterization questions, I gave it a try. Got connected to an IRS tax law specialist in about 35 minutes. The agent explained that my tax software was incorrectly double-counting my recharacterized contribution because it didn't understand the 1099-R codes properly. She walked me through exactly how to override the software's calculation and confirmed that Form 8606 would properly document everything for both tax years. She also explained that the October deadline for recharacterization applies regardless of when you filed or amended your return, which wasn't clear from any of the IRS publications I read. Would have been impossible to get this clarification without actually speaking to someone.

Something that wasn't mentioned yet: make sure the custodian coded your 1099-Rs correctly. I had a similar situation where my recharacterization 1099-R should have had code N, but they incorrectly used code J (early distribution). This made my tax software think I had taken money out of my IRA and was subject to penalties. I had to call the investment company and have them issue a corrected 1099-R with the right code. Once that was fixed, everything calculated correctly in my tax software.

Does anyone know if I can still do this recharacterization thing for my 2024 contribution? I contributed to a Roth earlier this year but just realized my income will be too high.

Just wanted to add another perspective on this situation. I had a very similar mess with my 2023 Roth contribution and recharacterization timing, and what really helped me was understanding that the IRS treats the recharacterization as if you had made the correct choice from the beginning. The key insight that wasn't immediately obvious to me: when you recharacterize in 2024 for a 2023 contribution, you're not making a new 2024 contribution - you're retroactively changing what type of contribution you made in 2023. This is why your 2024 Roth contribution is completely separate and valid. Make sure when you're entering the 1099-R information in your tax software that you're categorizing it correctly. The recharacterization 1099-R should be coded as "N" and the conversion should be coded as "2". If your software is still showing over-contribution after entering these correctly, you may need to manually override the calculation or seek help from a tax professional who understands backdoor Roth conversions. Also double-check that your custodian reported everything with the correct tax year designations on the 1099-Rs. Sometimes they get confused about which year a recharacterized contribution should be attributed to.