Hey all,
So I foolishly made the decision to recharacterize my Roth IRA to Traditional back in November because I thought I could deduct it all - I didn't realize the income cap of $116k at the time though and just realized it recently (doh). Our magi is above that so I unfortunately cannot deduct any of the recharacterized Traditional IRA contributions.
That said, I know I still have to report the recharacterization and also the nondeductable income. I'm not sure if I'm doing it right but here are the details...
Wife:
$5500 contributed to her 2014 Roth IRA total
$5277.88 ($5038 + gains) recharacterized from Roth to a Trad IRA in November
$462 I contributed to her Roth IRA after the recharacterization for whatever reason - I probably just didn't realize it
In her case, $5500 was reported as Roth contributions, and added her 1099-R (provided from Fidelity) for $5277.88. A form 8606 was not filled out for her since she did not make any nondeductable IRA contributions.
Me:
$4995 contributed to 2014 Roth IRA total
$5285.21 ($4995 + gains) recharacterized from Roth to a Trad IRA in November
$505 I contributed to my Traditional IRA after the recharacterization but this was nondeductable.
In my case, I reported $4995 as Roth contributions, and added the 1099-R for $5285.21. I also filled out a Form 8606 for myself, reporting the $505 of nondeductable [Traditional] IRA contributions.
So, did I file this all correctly?
I *think* I did (did this in Taxact but it's not very easy to navigate doing this on their site either).
Just wanted to double-check before I move on with filing (I'm still probably gonna scrutinize my return several times before I file of course).
Thanks all!