I’m using TurboTax and hoping someone can clarify if what I am doing is correct. I contributed to Roth IRA, but MAGI is above limit so I recharacterized in 2022. For 2021 tax return, I selected Traditional IRA > No to repayment of distribution > No to excess IRA contributions > No to non deductible contributions to IRA…after saying No to all of the questions, it states that I have a penalty. I thought I didn’t have to pay a penalty if I recharacterized? Any help appreciated!

like
Posting as :
works at
You are currently posting as works at

Not really following. If you recharacterized, it is as if you contributed to traditional IRA on Day 1 and never contributed to Roth. Why are you questioning the penalty? Is your return showing a penalty?

Related to the recharacterization or is it a late payment penalty or other penalty. Can you drill down on the penalty and see how it is calculated?

OP - I followed these steps and didn’t have to pay any penalty. Take a look. Hope it helps

https://www.whitecoatinvestor.com/how-to-report-a-backdoor-roth-ira-on-turbotax/

You are welcome!

Related Posts

I work with small business retirement plans and the profitability of different companies is amazing to me.
I have a small dog food company and a local flower shop, each with 2 owners, who max out their 401k every year for both owners, plus 25% profit share.
Who knew there was that much money there?

like

Currently have $600k in the stock market (growth stocks mostly), $20k in Roth IRA, $50k in cash, and $25k in crypto. Where else should I be investing my money? (I’m 27).

like

How do people in hcol cities do it? All in, I make a little under 200k in Atlanta. Im able to max out my 401k, HSA, & back door roth. I save 1200 + buy 2 shares of VOO /month. Mortgage/HOA is 2100. After all that, I find myself watching every penny on my Amex bc money feels tight. Would love to move to a bigger city but PwC wouldn’t pay that much more & it’s hard to envision mortgage or rent doubling like it would in SF/LA/NYC. Tips for how to make your budget work? Just save less?

likefunny
like

If Biden or Trump win, will my federal law school student loans change either way. Should I just cry now or later

likefunny

Where do you all live? You planning to hire a nanny post delivery and when you return to work? How much should I expect to pay for nanny? Thank you all!

like

Guys, I need your expert suggestions. All figures are in INR
I am living in Europe with my wife. We both are earning.We save around 4.5 to 5 lakhs every month based on exchange rate. We have SIPs of around 60k. Please help me to invest my savings. Apart from mutual fund SIPs I don't know much.

like

Joining a startup without a traditional 401k (not US based). Are there any other equity investing options besides IRA and standard brokerage contributions?

like

M, 44. After 21 years of marriage, my wife and I signed divorce papers with no contest. We have two adult daughters together, 18 and 21 So no child support, no alimony, and I make $170k at 44. I recently moved out of the marital house into an apartment,m. What should my next steps look like at this point? Do I need counseling?

like

I’m just trying to get into rental real estate. Any books to recommend?

like

What are the upfront costs of buying a flat beyond deposit and stamp tax? Trying to figure out if I can afford to buy. I’m 37 and don’t want to be paying rent in retirement.

What is with people not knowing how to read signs? We have a huge one that says “NO CASH ALLOWED” and I still get asked almost everyday if we take cash

like

Whats your annual income should be to invest in Roth IRA to get a tax benefit? I’m making 150k ( married but spouse not working)..is it better to invest in index or roth ira?

like

Am I eligible for VBP if update exit tool in August 3rd week?

like

I'm planning to use my 401k to pay for my full-time MBA. Does this qualify as an exception to the 10% penalty? Has anyone done this before. Thanks!

funny

I have personal accounts (under my SSN) and a business account (under a C corp's EIN) at a major bank. I opened new checking and IOLTA accounts for my new law firm (under a new EIN), accessible online via a new userid.

Now the bank has tied my new law firm's accounts to the C corp's EIN and userid. The bank's phone support people say I need to wait until tomorrow to visit the branch. Until then, the C corp's owners, bookkeepers, and systems can access the law firm's IOLTA and general accounts.

like

Who should I trade for? 12 team standard league. Feel like I have too much depth on the bench (Elijah Mitchell, Julio, diante Johnson, devonta smith) to not make a trade. I’m thinking I would probably be open to trading for a top tier wr, Rb, or tight end. Or even consider trading for a middle of the pack tight end.

Post Photo
like

At PwC, how long does it take to get reimbursed from SAP? I don’t have my corporate Amex yet, and I submitted my various business expenses about 3 weeks ago.

likehelpful

More Posts

Greetings to ALL. I am happy to be a part of this group. I work in pediatrics!

like

Will Bosch give new laptop when joined? Or Am I expecting too much?Bosch

like

Hi guys,

Can someone share some good pg near bosch adugodi campus.
How much will they charge for single room approx?

like

After how many days of documentation clearance does Accenture calls regarding the offer discussion?

like

I see a bug in recruitment portal. Has anyone faced the same and can help here?
While updating the past employment, address field is in drop down option with just 1-2 values which is irrelevant in my case. How should I proceed?

Has anyone attended CGI data engineer interview recently?
Please share the interview experience.

like

Anyone done level II while working tough hours? How’d you manage the time?

like

Latest full stack tech list to grap best package from market

Java, Spring Boot
React Js, Angular
ElasticSearch,
Azure/Aws

Plus point :Data structure, Algorithms and Problem solving

like
like

Can anyone refer me to any openings for Oracle Fusion/EBS Finance Functional role ?

like

Anyone recently joined Accenture and just hardlock to a project with no work? How long does it takes to get allocated to project ?

like

Can someone please tell me what is advance tax analyst rank 44 role in EY gds?

like

Hi Folks, I'm looking for supply chain consulting role in UK. Preferably in digital transformation.

I'll need a visa sponsorship

Hello,

I am a graduate and recently completed PG Diploma in Data Science from NIIT, currently seeking an opportunity. Please refer if there are any openings in your respective organization.

Open to connect via DM or on LinkedIn.

Thank you

like

Here we go Twitter hiring freeze

like

Need a PwC referral for a job position I am interested in! Thank you PwC

likehelpful

Hi! Anyone know what the range is for a early talent recruiter with 1 YOE in fully cycle recruitment? Based in Toronto, Canada. Please let me know if commission/ incentives are common.

like

Hi Fishes,
I am working in X organization having 2 yoe in java and working as support in banking domain having 4.5 as salary. I got an opportunity for onsite For Australia for 6 months but as support and and no learning. And I got an offer from other company(Top Bank) as Full Stack Java Developer and it salary is 14 LPA.

what do you best choice onsite or jobswitch?

like

Hi,
Currently I am having 4.8 lpa how much 8 can expect if I will switch to other company. I am having 5 years of experience in SAP

like

Additional Posts in Personal Investment Chatter

How/Why is compounded interest “magical”? Is there a calculator of if I invest X amount each year what my portfolio could look like in 20 years? Right now, I am contributing $80,000 annually in my liquid investments and maximizing my 401k contribution.

like

TVIX for next week?

like

Researching for Benchmarks to peg a portfolio against. The portfolio in question has broadly 70% equities, 20% Fixed Income and 10% Cash/Money Accounts.
..
Are there industry recognized benchmarks that you would recommend?
..
I'm trying to avoid weighting existing Equity only or Fixed Income only benchmarks.

like

Have my fathers Ira passed down to me due to his passing a few years back. Can I transfer the assets into my own account or can I move them to my own Roth IRA (pay taxes on the gain)? Want to simplify and have less accounts

like

Thoughts on daily recurring investment of $100 on SPY and $50 on VOOG.

Also, what are people's thoughts on doing daily $10 recurring investments in AAPL, GOOG, and FB

like

Would love some advice. Currently have 60k in student loans with 0% interest due to covid, but 7.6% when forbearance ends. Given the current market do you think it’s more beneficial to pay my loans off slowly and invest some of my additional income, or work towards paying off the loans as quickly as possible?

like

I am 33 years old immigrant living in the USA. I am not a resident and I don’t have any intention to become one. Does it still make sense for me to join a 401k and then eventually drop out of it in 2/3 years?

like

Noob question... I have only invested long term so far. What are tax/ other implications of short term selling ? I expect the market to dip again so thinking of selling what I bought last week now

like

Has anyone here successfully fought off a NYS residency audit when changing your state of residency? Hoping to relocate to FL to take advantage of no capital gains.

like

Just started my career and looking for advice. Other than putting money into my 401k what opportunities should I be looking at? I live for free so I have a decent amount of money.

like

What’s everyone’s $$$ for “I’d retire if I had “x” in the bank.

like

Going back and forth on selling my current home. I received a pre-approval for a single family primary residence for $400k with $100k for down payment and closing. My mortgage would be around $2500 a month with a conventional loan. The $100k will come from my house currently being sold. I can afford the payment just need to know is the monthly mortgage payment typical for a home in today’s market.

like

How to learn about investing in stock market? Could you suggest a book or a website or a YouTube channel. Thanks

like

Does anybody work with personal capital for wealth management? I just had a meeting with them and it seems a good thing to have them manage investments since I don't have the time (or skills/knowledge to do it? I'd love to hear from who have hired them what your experience has been... Thanks!

like

New to investing...main depository relationship with BoA...good or bad to use merrill edge for investing? Plan on just looking at etfs/mutual funds

like

Has anyone tried using air bnb to rent out their property daily versus finding a long term tenant? Curious about the pros and cons to consider. I’d rather do air bnb so that I can use it also when I come into town, however not sure how big of a headache this can turn into. Appreciate any tips.

like

Does anyone know how to have Google Sheets or Excel automatically pull up weekly prices of stock tickers? Currently keeping an Excel sheet running of stocks mentioned from financial newsletters I read and updating manually. Any formula or trick to track investments would be helpful - thanks!

like