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.
  1. Enter the following information on the
    1099R
    screen.
    • Enter the fair market value in box 1.
    • Enter
      0
      (zero) in box 2a.
    • Enter code
      R
      or
      N
      in box 7.
  2. In the
    1099R-3
    screen, select the code in the
    Recharacterization type
    field.
    • Amounts originally contributed to a traditional IRA being recharacterized to a Roth contribution IRA are identified with the code
      1
      .
    • Amounts originally contributed to a Roth IRA being recharacterized to another IRA type are identified with the code
      3
      .
  3. Enter the original amount that was converted or contributed in the
    Original conversion or contribution amount
    field.
  4. Open the
    IRA
    screen in the
    Retirement
    folder and enter any current year contributions, basis information, and IRA values as necessary.
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