kmsmith1
Level 2
03-09-2021
11:43 AM
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I have a client that in 2019 made Roth IRA contributions of $6k. However, the client was over the income threshold. On 6/3/2020, before filing 2019 taxes, the client recharacterized the Roth contribution to Traditional IRA to correct the Roth contribution. On 6/5/2020, the traditional IRA was converted to Roth IRA as a backdoor Roth IRA. Both transactions were completed before the tax filing date of 7/15/2020.
For 2020, the taxpayer contributed $6k to the Roth IRA and was not above the income threshold. How should this be reported in ProSeries Basic for tax year 2020?