Reply To: Roth IRA recharacterized to TIRA

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#5477
Alan S.
Participant

1) If the contribution is non deductible, Form 8606 will show 6000 on line 1, the same amount as the original Roth contribution.

2) Correct. The box 7 code should be “R”.

3) The 5498 reporting the Roth contribution will not be corrected, but the Roth custodian will issue the 1099R described above. There will also be a 2020 5498 issued for the TIRA account showing receipt of a recharacterized contribution of 5800 in Box 4.

4) Correct, a 1099R will be issued for the TIRA reporting a distribution of 5800, and a 5498 issued by the Roth custodian reporting receipt of a conversion contribution of 5800.