1040-US: IRA recharacterization overview

Alerts and notices

Question

How do I enter an IRA recharacterization?

Answer

Enter in Screen 1099R the fair market value in box 1, 0 (zero) in box 2a, and code R or N in box 7. Also in Screen 1099R-3, enter the original contribution or conversion amount in the Original conversion or contribution amount field, and the following recharacterization types as appropriate.

  • A traditional IRA contribution that was recharacterized to a Roth IRA. This amount is used in the calculation of the net amount shown as a positive amount on line 19 of Form 8606. See Entering IRA recharacterizations for details.
  • A Roth IRA contribution that was recharacterized to another type of IRA. This amount is used in the calculation of the net amount shown as a negative amount on line 19 of Form 8606 and is added to the amount of Roth IRA contribution calculated on the Roth IRA Contribution Worksheet or the Roth IRA contribution you enter in Screen IRA. If this recharacterization was transferred to a traditional IRA, make entries for a traditional IRA contribution as usual.

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