How can we help?
search-icon
Popular Topics:     Import Options  •   Refund Status  •   Amend Return  •   File Extension
Help Center>
Recharacterization #2 - Roth IRA Contribution Recharacterized to Traditional IRA
1
If you have a situation where you made a contribution to a Roth IRA and later recharacterized part or all of it to a traditional IRA, review the IRS Instructions for Form 8606.
NOTE: A conversion of a traditional IRA to a Roth IRA, and a rollover from any other eligible retirement plan to a Roth IRA, made in tax years beginning after December 31, 2017, cannot be recharacterized as having been made to a traditional IRA.
In the TaxAct program, you will enter the net Roth IRA contribution amount (contribution minus recharacterized amount). Report the nondeductible traditional IRA portion of the recharacterized contribution, if any, on Form 8606, Part I. Don’t report the Roth IRA contribution (whether you recharacterized all or part of it) on Form 8606. Attach a statement to your return explaining the recharacterization.

To enter or review your IRA contribution entries in the TaxAct program, follow these steps. 
Online
Dashboard
  1. From within your TaxAct return, click Resources.
    • On smaller devices, click the menu at the top left corner of your screen, then make your selection.
  2. Under My Return, click Federal Search. 
  3. Click the IRA Contributions drop-down, then click the appropriate IRA contribution type.
  4. Complete the rest of the interview process. 
Classic
  1. From within your TaxAct return, click Federal. 
    • On smaller devices, click the menu at the top left corner of your screen, then make your selection.
  2. Click the IRA Contributions drop-down, then click the appropriate IRA contribution type.
  3. Complete the rest of the interview process. 
Desktop
  1. From within your TaxAct return, click Federal. 
  2. Click the IRA Contributions drop-down, then click the appropriate IRA contribution type.
  3. Complete the rest of the interview process. 
 
To enter or review Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. in the TaxAct program, go to our Form 1099-R - Entering Distributions from Retirement Plans FAQ.
Because of the recharacterization situation, you need to include a statement with your return. For help including a statement, go to our IRA - Distribution Explanation Attach Statement FAQ.