Filing Taxes with 1099R and 5498

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ktruong08
ktruong08 Member Posts: 1 Newcomer

Hello,
For my 2023 taxes, I have both forms 1099R & 5498. When I file my tax return, where and how do I provide my 5498 information? I want it to be clear that I did not contribute beyond the 2022 contribution limit, and that I only made non-deductible & post-tax contributions.

Details below:
I completed most of my 2022 IRA contributions into a Roth IRA, before realizing at end of year, that our joint income (husband and I) would exceed the limits to be eligible for Roth IRA contribution. Therefore, I recharacterized my contributions to a traditional IRA & completed a Roth conversion in January 2023 (conversion of both my 2022 total contribution & initial installments of my 2023 contribution). I received my 1099R, which lists both my gross distribution and taxable amount as more than $6000 (due to combining the 2022 contribution & 2023 contribution).

Was there a clear way I could input this for my income taxes to make it clear I did not exceed any limits and only made non-deductible and post tax contributions?

Thank you in advance for your time & help!

Answers

  • rachels
    rachels FreeTaxUSA Agent Posts: 50
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    Hi ktruong08,

    Form 5498 reports your annual IRA contributions to the IRS. This is usually an informational form and won't need to be entered in the software. You will enter your contribution, recharacterization, and distribution information in the following locations:

    -Distributions/rollovers/Roth conversions: You will enter your 1099-R by going to Income > Common Income > Retirement Income (1099-R) in your account. As you continue through these screens, you will be asked whether the amount was rolled over to a different retirement account or converted to a Roth.

    After getting back to the "Your Retirement Income (Form 1099-R)" screen, click "No, Continue" to indicate that you do not have any additional 1099-R forms to enter. The following screens should ask about your IRA basis from prior years (ie. If you are filing your 2023 return, this would typically be your nondeductible IRA contributions from 2022).

    -IRA contributions/recharacterizations: Go to Deductions/Credits > Common Deductions/Credits > IRA Contributions. You would enter the original type (Roth) and amount of your contribution, as well as indicate that you made a recharacterization. The following screens will gather information about the recharacterization.