Recharacterization
Hello-
Husband and wife made $6,000 Roth contributions each. It was filed on their return that they made Traditional IRA contributions instead. Tax return timely filed with no extension. In their situation, $4,230 was reported as a deductible contribution and $1,770 a non-deductible contribution on 8606 for both husband and wife.
They have two primary options that I am aware of:
1. They can still recharacterize the $4,230 (plus earnings) for each of them to a Traditional IRA. If they do this, they would just have to amend the 8606 forms correct?
2. They can amend the return and record the full Roth contributions.
Does that sound correct?
Thank you!
Permalink Submitted by Alan - IRA critic on Thu, 2022-06-23 21:34
Correct, they could correct the non conformity either way. If the current return showing the same deductible amount for each spouse is correct, then they must both be active participants in a workplace plan. If that is not the case, then there is still an issue. Please clarify that both were active participants.
Permalink Submitted by Alan - IRA critic on Thu, 2022-06-23 21:34
Correct, they could correct the non conformity either way. If the current return showing the same deductible amount for each spouse is correct, then they must both be active participants in a workplace plan. If that is not the case, then there is still an issue. Please clarify that both were active participants.