What happens if I recharacterize my IRA contribution after December 31, 2025?
If you recharacterize your IRA contribution after December 31, 2025, you'll need to report specific information on your 2025 return and additional information on your 2026 return.
Your 2025 Return:
If you recharacterize your IRA contribution after 2025 and before the extended due date of your 2025 return, you'll still report your IRA contribution on your 2025 return. You'll need to enter it under the type of contribution it was originally contributed as, and then you'll indicate that it was recharacterized.
Your 2026 Return:
In 2026, you'll receive a 1099-R for the recharacterization, and you'll simply report that on your 2026 return. The amount shown on the 1099-R shouldn't be taxable.
Example: You contribute to a Roth IRA in 2025. But when you're filing your return in 2026, you realize you made too much money to contribute to the Roth IRA. So you decide to recharacterize this contribution. You'll need to work with your financial institution to recharacterize it as a traditional IRA during 2026.
Your 2025 Return: You'll enter the amount you contributed to a Roth IRA. Then you'll indicate that it was recharacterized and enter some additional information about this recharacterization.
Your 2026 Return: In 2026, you'll receive a 1099-R showing your recharacterization and you'll enter this nontaxable 1099-R on your 2026 return.
What if I also convert my IRA to a different type after December 31?
Your 2025 Return:
If you recharacterize your IRA contribution after 2025 and before the extended due date of your 2025 return, you'll still report your IRA contribution on your 2025 return. You'll need to enter it under the type of contribution it was originally contributed as, and then you'll indicate that it was recharacterized.
Your 2026 Return:
In 2026, you'll receive a 1099-R for the recharacterization, and you'll simply report that on your 2026 return. The amount shown on the 1099-R shouldn't be taxable.
Example: You contribute to a Roth IRA in 2025. But when you're filing your return in 2026, you realize you made too much money to contribute to the Roth IRA. So you decide to recharacterize this contribution. You'll need to work with your financial institution to recharacterize it as a traditional IRA during 2026.
Your 2025 Return: You'll enter the amount you contributed to a Roth IRA. Then you'll indicate that it was recharacterized and enter some additional information about this recharacterization.
Your 2026 Return: In 2026, you'll receive a 1099-R showing your recharacterization and you'll enter this nontaxable 1099-R on your 2026 return.
What if I also convert my IRA to a different type after December 31?
