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Re-characterized Traditional/Roth IRA with Back Door

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  • Re-characterized Traditional/Roth IRA with Back Door


    So for tax year 2021, I did not realize my spouse and my combined income exceeded MAGI and we both contributed $6000 to our individual Roth IRAs. Once I realized we exceeded our MAGI, I re-characterized them into our Traditional IRAs. Once those funds settled, I then back door'd them into our individual Roth IRAs.

    This all took place in calendar year 2022 since I didn't know we had exceeded our MAGI until we did our taxes. As such, we did not receive 1099-Rs from Fidelity.

    Does anyone how one reports all this on their taxes? Especially TurboTax?


  • #2
    Roth conversions are always reported in the calendar year in which they are executed, so you will report the conversion in 2022. Contributions are reported for the calendar year for which they are made. You will report the contribution in 2021 but the conversion in 2022.
    Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087


    • #3
      Make sure to include an explanation statement in your 2021 return*. This notifies the IRS that there will be a Form 5498 mismatch.

      *Almost all tax software will have a provision for this.