Hello-

Certain retirement distributions can cause a client to not be eligible for the Savers Credit. The client recharacterized their Roth contribution to their Traditional IRA contribution due to wanting the deduction in 2022 (received a 1099-R). The client is completing their taxes and now shows they don’t qualify for that Savers Credit due to the recharacterization being treated as a distribution. Recharacterization isn’t specifically mentioned as an exception but I think it may fall under some of the other exceptions. A recharacterization from a Roth IRA to Traditional IRA is not a “distribution” that causes a client to miss out on the Savers Credit correct?

Thank you!