Hello-

Husband and wife made monthly $500 contributions to their Roth IRA. Wife also had a small Traditional IRA (about $3,500) that was converted to a Roth in 2022. There was no basis.

Husband and wife recharacterized their monthly contributions to a Traditional IRA (about $5,300 for each moved to Traditional IRA) and are taking the deduction ($6,000 each) for the contribution (AGI is about $80K and both were covered by a retirement plan).

1. In the explanation for the recharacterization, should they list out each date the monthly contribution is made or simply monthly contributions of $500 and the date of the recharacterization will suffice?

2. The system they are using to prepare their return is saying there is basis as a part of their Traditional IRA conversion. She made no non-deduction contributions and rolled over no non-deduction contribution to the IRA. The recharacterization wouldn’t create basis correct? We went over the IRA entries with a fine tooth comb but can’t determine what is causing the basis. Am I missing something?

Thank you!