1] A taxpayer made a $6600 contribution to a ROTH IRA in 2024, and then discovered in Feb 2025 (while doing his 2024 tax return) his income was too high to make a ROTH contribution without the 6% penalty.
The taxpayer did a trustee-to-trustee recharacterization the $6600 contribution to an IRA in Feb 2025.
A] Is it correct that the taxpayer needs to attach a statement to his 2024 tax return explaining the recharacterization.
B] Does the following statement include the required information:
In 2024, the first ROTH contribution was $200 on 01/09/2024, and the total ROTH contributed in 2024 was $6,60. All $6600 of the 2024 contributions were recharacterized, and the value of that portion on the date of recharacterization was $7,459.17. The recharacterization took place on 02/05/2025.
C] In this case, is it correct that nothing has to be reported on Form 8606 for his 2024 tax return.
2] As an ancillary question, if this recharacterization had occurred in 2024:
A] Is it correct that the taxpayer needs to attach a statement to his 2024 tax return explaining the recharacterization.
B] Is it correct that the $6600 transferred from the Roth IRA should be included on the 2024 Form 1040 line 4a, and 1040 line 4b should be zero.
C] Is it correct that nothing has to be reported on Form 8606 for his 2024 tax return.
The taxpayer did a trustee-to-trustee recharacterization the $6600 contribution to an IRA in Feb 2025.
A] Is it correct that the taxpayer needs to attach a statement to his 2024 tax return explaining the recharacterization.
B] Does the following statement include the required information:
In 2024, the first ROTH contribution was $200 on 01/09/2024, and the total ROTH contributed in 2024 was $6,60. All $6600 of the 2024 contributions were recharacterized, and the value of that portion on the date of recharacterization was $7,459.17. The recharacterization took place on 02/05/2025.
C] In this case, is it correct that nothing has to be reported on Form 8606 for his 2024 tax return.
2] As an ancillary question, if this recharacterization had occurred in 2024:
A] Is it correct that the taxpayer needs to attach a statement to his 2024 tax return explaining the recharacterization.
B] Is it correct that the $6600 transferred from the Roth IRA should be included on the 2024 Form 1040 line 4a, and 1040 line 4b should be zero.
C] Is it correct that nothing has to be reported on Form 8606 for his 2024 tax return.
Comment