Excess Roth IRA Contribution, Withdrawal, and Backdoor Roth IRA
For 2025, I over contributed $7k to a Roth IRA, withdrew my contributions and earnings, put the contributions and earnings in a traditional IRA, rolled over the earnings to my 401k, then did a backdoor Roth with the $7k, plus converted a few dollars of interest earned during the process. I have three 1099-Rs: one for my earnings rolled over to my 401k, one for my rollover of a traditional IRA I already had to my 401k, and one for my Roth IRA excess contribution withdrawal. My Roth IRA 1099-R has around $8k in both 1, 0 taxable amount in box 2a and code N in both 7. TaxFreeUSA won’t let me continue with the 1099-R with 0 taxable amount. What am I doing wrong?
Answers
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Hi Gopherbear1,
Code N means the Roth IRA was recharacterized. The software should allow you to continue, but you may get a yellow alert. If everything is correct, you may continue past the Yellow alert. We have that alert there to ensure you did not enter something in error.
You may want to review this article:
With that said, this is a fairly complex issue that we may not be able to fully assist you with in the Community. I recommend that you contact Support while signed into your account, so a support specialist can review your entries. Consider adding Pro Support.
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