Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I have a client who recharacterized an IRA contribution. He…

Customer Question
I have a client...

I have a client who recharacterized an IRA contribution. He received a form 1099 R with code N. How do I handle those on the tax return?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

1099R has $47525, taxable amount not determined and total distribution boxes checked. Distribution code in N

Accountant's Assistant: Is there anything else the Accountant should be aware of?

Is this amount taxable? If not, how do I make it not taxable on the tax return? no

Submitted: 19 days ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 minute by:
4/3/2018
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 19 days ago
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,164
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
Verified

Hello!

My name is***** will assist you today.

Please give me one moment while I review your question and type my initial response

Ask Your Own Tax Question
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 19 days ago

Likely, the full amount will be taxable.

When the conversion is from an IRA to a Roth IRA the amounts will be reported on line 15a is $47525 and 15b. 15b is for the taxable distribution amount.

___

The taxable amount is any amount that is above the clients cost basis in the IRA. ---Typically, a client will not have a cost basis in an IRA and the full amount would be taxable. ---When the taxable amount is not determined, the burden of proof to prove cost basis in the IRA is on the client.

As you likely know Code N is for a recharacterization of an IRA contribution.

Please let me know if this has answered your question or if you have any additional questions.

When you have no further questions a positive rating of 5 stars is much appreciated.

Thank you!

Ask Your Own Tax Question
Customer reply replied 19 days ago
He went from a Roth to a Traditional IRA. He had another 1099R with distribution code 1 for 47625. So his total taxable amount would be 92k plus? Doesn't seem right.
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 19 days ago

When the amount is transferred from a Roth to a traditional IRA the amount is not taxable, and thus not placed on line 15b

Ask Your Own Tax Question
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 19 days ago

Any growth within the Roth IRA of the clients original contribution to the Roth will be taxable in the conversion.

The growth over the original contribution will be the amount reported on 15b

Ask Your Own Tax Question
Customer reply replied 19 days ago
Ok, last question. Do you put in any amount for IRA contributions for tax year 2017?
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 19 days ago

To report non deductible contributions to an IRA you will complete form 8606

I have included a link to the instructions below

https://www.irs.gov/pub/irs-pdf/i8606.pdf

Ask Your Own Tax Question
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 19 days ago

Please let me know if this has answered your question or if you have any additional questions.

When you have no further questions a positive rating of 5 stars is much appreciated.

Thank you!

Ask Your Own Tax Question
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 19 days ago

Hello,

Are you satisfied with the Answer you received?

If you have any follow up questions please don't hesitate to Ask.

You can rate me by using the stars, or faces on your screen and clicking submit

I look forward to working with you in the future and I hope you feel that I provided you with 5 Star services

Regards,

Chad CFP ® professional

Federally Licensed IRS Enrolled Agent

Ask Your Own Tax Question
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 14 days ago

Hello,

Are you satisfied with the Answer you received?

If you have any follow up questions please don't hesitate to Ask.

You can rate me by using the stars, or faces on your screen and clicking submit

I look forward to working with you in the future and I hope you feel that I provided you with 5 Star services

Regards,

Chad CFP ® professional

Federally Licensed IRS Enrolled Agent

Ask Your Own Tax Question
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 13 days ago

Please let me know if this has answered your question or if you have any additional questions.

When you have no further questions please take a moment to accept the answer so I am credited for my work. A positive rating of 5 stars is much appreciated.

Thank you!

Ask Your Own Tax Question
Was this answer helpful?
Ask Chad EA, CFP ® Your Own Question
Chad EA, CFP ®
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,164
2,164 Satisfied Customers
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA

Chad EA, CFP ® 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

1,338 satisfied customers

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

Richard

Richard

Tax Attorney

4,451 satisfied customers

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

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

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

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 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.

< Previous | Next >

Related Tax Questions
On form 8606, what does line 22 refer to? The amount of Roth
On form 8606, what does line 22 refer to? The amount of Roth IRA contributions for the year? or the initial contribution? or accumulated contributions?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,939 satisfied customers
Are non Roth and Roth IRA contributions reported on your tax
Are non Roth and Roth IRA contributions reported on your tax return? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Quick $5 yes-or-no tax question: I know that a Roth IRA
I know that a backdoor Roth IRA requires that I file a form 8606.My questions does a backdoor 401(k) Roth contribution require I file a form 8606. Even though the initial non-deductible contribution and the rollover conversion occur within the 401k (no outside IRA involved), 1099-R and 5498 forms were still generated. … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Does Massachusetts tax Roth IRA distributions if the
Does Massachusetts tax Roth IRA distributions if the contributions were made in NY while a NY resident and withdrawn years later while a Massachusetts resident.… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I accidentally contributed to traditional IRA in addition to
Second opinion] I accidentally contributed to traditional IRA in addition to maxing out 401k. The amount that I contributed to traditional IRA was taxed. What can I do fix this so I don't get taxed wh… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I accidentally contributed to traditional IRA in addition to
I accidentally contributed to traditional IRA in addition to maxing out 401k. The amount that I contributed to traditional IRA was taxed. What can I do fix this so I don't get taxed when I withdraw mo… read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
A taxpayer converts a Traditional IRA to a Roth IRA and
A taxpayer converts a Traditional IRA to a Roth IRA and receives a 1099R for 68,333. Her basis in the Traditional IRA is 58,500. None of the 58,500 was deducted on her return as she participated in a … read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
Turbo tax says that we cant deduct an an traditional ira
turbo tax says that we cant deduct an an traditional ira because we made over 196,000 We didnt make that much. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
In 2016, I took an early distribution from a traditional IRA
In 2016, I took an early distribution from a traditional IRA (I am 47 years old). I am filling out my 1040 return using tax software, and it has automatically begun filling out Form 5329 and asking me… read more
abci168
abci168
Principal
27 satisfied customers
Filing online. On tax form it asks for taxable amount (2b)
Filing online. On tax form it asks for taxable amount (2b) on a distribution from an IRA rollover account Form 1099-R. There is no amount given, just an X in a box and saying taxable amount not determ… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
In calendar 2017, I made excess contribution to my Roth IRA.
In calendar 2017, I made excess contribution to my Roth IRA. I will withdraw excess contribution and interest earned prior to filing tax return. Will the interest earned be reported on my 2017 return … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I converted $10k from my Traditional IRA to a Roth IRA in
I converted $10k from my Traditional IRA to a Roth IRA in December 2017. The goal was to pay taxes up to the 15% bracket. I ended up converting about $3500 too much and now need to recharacterize that… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Question in regards to roth IRA distribution and taxes. Roth
question in regards ***** ***** IRA distribution and taxes. … read more
Chad EA, CFP ®
Chad EA, CFP ®
CERTIFIED FINANCIAL PLANNER TM, Professional
2,164 satisfied customers
I a trying to properly complete a form 8606. I have a 1099R
I have a 1099R and I am getting an error on the IRA set and how to correctly complete a for 8606 … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
931 satisfied customers
Form 8606 is giving. me problems. Let me explain. In 1963 I
Form 8606 is giving. me problems. Let me explain. In 1963 I started at AT&T and in those days contributions to 401Ks /IRAs were taxed. Thererfore I use 8606 so I don,t get taxed twice on the same mone… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
931 satisfied customers
I received an roth ira distribution for the first time which
i received an roth ira distribution for the first time which is less then my contributions over the years. I am under 59 1/2 . What excemption do I use on the the 5329 ? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I intended to request a traditional IRA distribution in
I intended to request a traditional IRA distribution in 2017. Unfortunately I miscalculated the date and missed the deadline by 1 day. If I request it tomorrow, the financial institution that holds my… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,939 satisfied customers
Can one take a distribution from a traditional IRA to pay
Can one take a distribution from a traditional IRA to pay for a dependents college tuition without incurring the 10% early withdrawal penalty?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 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