What do I need to file on a full recharacterization
Hello,
I converted a Traditional IRA amount to a Roth IRA in 2010. In early October 2011, I recharacterized my full Roth conversion including net income back to a Traditional IRA. Since I had chosen to pay taxes in 2011/2012 for this event, there is no impact on my 2010 taxes. I had received a small refund (not related to conversion) when I filed my 2010 returns.
I filed my 2010 tax returns before the April deadline. The only change I have done is the above recharacterization and need to report it.
Based on inputs here and elsewhere:
I have prepared the 1040X which includes only my personal information at the top, and entered recharacterization reason in Part III “Explanation of changes”. No other information is needed to be populated, since there were no other changes. I have written “Filed pursuant to section 301.9100-2” on the 1040X. I have added an attachment that details the initial conversion amount (into Roth IRA) and final transferred amount (into Traditional IRA) and their dates.
I have not entered a 8606 as it is not required for a full recharacterization.
Question is: What all do I need to send to the IRS? signed 1040X, 1040 (copy from April), and my recharacterization explanation statement? The information on my recharacterization does not seem to go on any form, and is only provided in the explanation note.
Thanks
Permalink Submitted by Alan Spross on Sat, 2011-10-15 17:10
Just send the 1040X, not the original return. There is room to include the explanatory statement in Sec III (or C in prior 1040X edition), but if you have already completed it separately, you can just attach it. You may want to finish the statement indicating that Form 8606 is deleted from your return.
After doing this, the 1099R forms you receive in January should concur with your statement. It will show the amount that actually transferred back to the TIRA and that amount should be included in your statement. If the 1099R concurs, then you are done and do not have to reflect any of this on your 2011 or 2012 returns.