Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

In 2015, contributed $3600 into a Roth IRA. However when we

file the 2015 tax return...
In 2015, contributed $3600 into a Roth IRA. However when we file the 2015 tax return, we decided to re-Characterize that to a traditional ira.We received a 1099 r in 2016 with the code of R for recharachterization. The IRS is billing us $1000 for 2015 saying that we cannot deduct $3600 IRA.I was told by the trustee that in order to fix this I need to file for an 8606 for 2015. I keep looking over the instructions and cannot see how that has anything to do with recharacterization and if it does I don’t know how to fill out that form to show that. Can you guide me?
Show More
Show Less
Ask Your Own Tax Question
Answered in 8 minutes by:
11/13/2017
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,331
Experience: Taxes, Immigration, Labor Relations
Verified

According to instructions...

The trustee of the first IRA must report the recharacterization as a distribution on Form 1099-R and the contribution to the first IRA and its character on Form 5498.

See here

https://www.irs.gov/pub/irs-irbs/irb00-25.pdf

Please verify if form 5498 was issued - you may contact the trustee or get your tax account transcript.

Ask Your Own Tax Question
Customer reply replied 1 month ago
I haven't seen a Form 5498 only the 1099R but I can look further. Are you saying that if both of the forms were filed by the trustees, then there would be no IRS notice? More importantly, are you agreeing with me that form 8606 is not applicable in this situation?

That is correct - form 8606 is not needed to report re-characterization.

I posted above IRS direction regarding reporting.

Most likely absence of form 5498 is the issue.

You may call the IRS - use the phone on the notice and verify that.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,331
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,331
30,331 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,336 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,906 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
On Social Security, received dividend on traditional IRA
On Social Security, received dividend on traditional IRA want to withdrawn funds from Roth IRA … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
882 satisfied customers
Roth IRA question: If the Roth is at least 5 years old, can
Roth IRA question: If the Roth is at least 5 years old, can you use basis to pay for college expenses for your NIECE or Nephew? Or does it have to be immediate family? Looking for an alternative to a … read more
Lev
Lev
Tax Advisor
30,331 satisfied customers
I want to convert $200K of traditional IRA to $200K of Roth
Hi. I want to convert $200K of traditional IRA to $200K of Roth IRA in 2017. I have a K1 $150K loss in 2017. Will my AGI be affected in this way $200K - 150K = 50K added to AGI for 2017? … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,252 satisfied customers
I withdrew 2100 dollars from my roth ira 8/28/17 and want to
I withdrew 2100 dollars from my roth ira 8/28/17 and want to put it back in there as a 2017 contribution but can I put it in a traditional ira instead and not have it considered over the 5500 dollar /… read more
Lev
Lev
Tax Advisor
30,331 satisfied customers
Is Form 1099-R Box 9b distribution taxable? How long can I receive it?
I have a client who receives a 1099R each year. The benefit is a statement of survivor annuity paid. Each year the payer list the gross amount of distribution in box 1 and "unknown" in box 2 which is … read more
Lev
Lev
Tax Advisor
30,331 satisfied customers
1099-R with distribution code 3. Can I get an earned income credit?
If someone receives a 1099-R with a distribution code 3, can they qualify for earned income credit? The person receives his pension because he became disabled.… read more
Bizhelp
Bizhelp
Certified Public Accountant (CPA)
Bachelor's Degree
638 satisfied customers
What are tax rules for an inherited Roth IRA, GA, the
what are tax rules for an inherited Roth IRA JA: Since estate law varies from place to place, can you tell me what state this is in? Customer: GA JA: What documents or supporting evidence do you have?… read more
Lev
Lev
Tax Advisor
30,331 satisfied customers
Traditional IRA contribution - *Married taxpayers file MFJ
Traditional IRA contribution -*Married taxpayers file MFJ *One spouse covered by retirement plan, one is not *AGI will be over $ 200K for 2017 *Taxpayer that is not covered by retirement plan, contrib… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
882 satisfied customers
I'm 75 and subject to annual RMD's from my traditional IRA.
I'm 75 and subject to annual RMD's from my traditional IRA. In looking a way to shelter the RMD amount if I were to reinvest it, I stumbled on the virtually unlimited IRA to Roth Conversion. My questi… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
882 satisfied customers
As I worked for a non-profit there was no Roth IRA for the
As I worked for a non-profit there was no Roth IRA for the 403-b. I got laid off last year and haven't been able to find another job. I moved my IRA to a well-known investing company. I am almost 62 a… read more
Lev
Lev
Tax Advisor
30,331 satisfied customers
I received a 1099-R for a Roth IRA conversion but some of
I received a 1099-R for a backdoor Roth IRA conversion but some of the contributions made to the traditional IRA were nondeductible, one was deductible and there were some earnings. Is the entire amou… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
882 satisfied customers
I recently withdrew money from a ROTH IRA that was opened in
I recently withdrew money from a ROTH IRA that was opened in 2015. It was a rollover from a Traditional IRA that was opened many years ago. I understand that I can only withdraw contributions that I m… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
If I am about to turn 70 and I have a Traditional IRA and a
Hi Pearl! If I am about to turn 70 and I have a Traditional IRA and a Roth IRA, can I take my RMD's from my Roth as opposed to my Traditional? I know that the Roth doesn't have required RMD's but I wa… read more
abci168
abci168
Principal
27 satisfied customers
I received a 1099-R for a IRA conversion, where I made a non
I received a 1099-R for a backdoor IRA conversion, where I made a non deductible contribution to a traditional IRA and converted it to a Roth IRA. The code says 2 on the 1099-R, would the conversion b… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
My wife has a traditional IRA, Roth IRA, 401K and a pension.
My wife has a traditional IRA, Roth IRA, 401K and a pension. I have a Rollover IRA, Roth IRA and two 401ks. We wish to divide all retirement funds 50/50 but I do not see a way to communicate that. Ide… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
882 satisfied customers
I am thinking of converting my traditional IRA to a Roth IRA
I am thinking of converting my traditional IRA to a Roth IRA and I am trying to figure out what tax rate is used in the conversion. My ordinary inocme, excluding cap gains and dividends, with be negat… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
IRS said the Roth IRA reported distribution was not held for
IRS said the Roth IRA reported distribution was not held for at least 5 years. It was. I was told I needed to send in a 8606 with my 2014 tax return. How do I go about doing that so I don't own the $1… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I'm trying to understand a 1099-R on a Roth IRA distribution
I'm trying to understand a 1099-R on a Roth IRA distribution showing a Code T in box 7. I'm a beneficiary of the Roth IRA (American Funds). The effective date ot transfer was in year 2008. So I have "… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x