Individual Retirement Account (IRA) recharacterization overview
Recharacterization is moving money from 1 type of IRA to another.
- Go to the1099-Rwindow and enter the following.
- Box 1: The IRA account value
- Box 2a:0
- Box 7:RorN
- Go to the1099R-3window.
- Enter the original contribution or conversion amount in theOriginal conversion or contribution amountfield.
- Enter the following a recharacterization type:
- A traditional IRA contribution that was recharacterized to a Roth IRA.This amount is used to calculate the net amount as positive on line 19 of Form 8606.
- A Roth IRA contribution that was recharacterized to another type of IRA.This amount is used in the calculation of the net amount as negative on line 19 of Form 8606. This amount is added to the Roth IRA Contribution Worksheet or the Roth IRA contribution you enter on the IRA screen. If this recharacterization was transferred to a traditional IRA, make entries for a traditional IRA contribution.
