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Financial Planning / Tax Strategies
|Subject: Re: Roth IRA Recharacterization||Date: 9/15/2013 8:16 PM|
|Author: TMFPMarti||Number: 119149 of 121179|
I think the OP is right to want his statements, 1099-Rs, and 5498 at year-end to reflect the actual situation - and I give him credit for thinking about it now, rather than next Feb. 15.
I don't recall OP expressing any concern at all about those documents, nor do I see a reason to have any.
Schwab will issue a 1099-R for the traditional IRA showing the conversion. They may, but are not required to, issue 1099-R's for the direct transfer of the accounts to Vanguard. Schwab will issue a 5498 for the Roth account showing the conversion amount. The custodian reports nothing, nada, zilch, bupkes about recharacterizations. That's why the taxpayer attaches a statement to the 1040 telling the story. Check out the instructions for line 15 of the 1040 and the 8606.
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