Reporting Recharacterization Past Original Due Date
Hello-
Client made a 2022 Roth contribution on 4/5/23. They recharacterized their contribution and earnings on 4/28/23 to a Traditional IRA since their income was too high.
Their 2022 tax return was filed in early April and did not report the original Roth or the recharacterized Traditional IRA contribution. What do they need to file now? Can they just file a 2022 8606 showing a $6K nondeductible contribution and write “Filed pursuant to section 301.9100-2” at the top since it doesn’t impact their 1040 or other schedules?
Thank you!
Permalink Submitted by Alan - IRA critic on Tue, 2023-09-19 14:40
They should file a 2022 1040X with Form 8606 attached and include the above wording with a brief explanation of the recaharacterization in Part III – Explanation of changes. This is the explanatory statement that should have been included with the original return. Since the tax due is not affected, the 1040X will be easy to complete.
Permalink Submitted by IRAQuestion5 on Wed, 2023-09-27 13:23
Thank you! They do not need to do this by October 15th correct?
Permalink Submitted by Alan - IRA critic on Wed, 2023-09-27 14:00
Correct, the 1040X does not have to be filed by 10/15.