Enter IRA recharacterizations
Complete the following steps to enter an IRA recharacterization.
To enter a traditional IRA distribution that was converted to a Roth IRA, then recharacterized back to a traditional IRA, first complete the steps detailed in Convert a traditional IRA to a Roth IRA. Then, complete the following steps on a 2nd unit of the
1099R
screen.- Enter the following information on the1099Rscreen.
- Enter the fair market value in box 1.
- Enter0(zero) in box 2a.
- Enter codeRorNin box 7.
noteUse codeRfor a prior year recharacterization. Use codeNfor a current year recharacterization. - In the1099R-3screen, select the code in theRecharacterization typefield.
- Amounts originally contributed to a traditional IRA being recharacterized to a Roth contribution IRA are identified with the code1.
- Amounts originally contributed to a Roth IRA being recharacterized to another IRA type are identified with the code3.
- Enter the original amount that was converted or contributed in theOriginal conversion or contribution amountfield.
- Open theIRAscreen in theRetirementfolder and enter any current year contributions, basis information, and IRA values as necessary.
