In certain situations (such as recharacterization of an IRA contribution or Roth IRA conversion, return of IRA contributions, or return of excess traditional IRA contributions), a statement must be attached to your return explaining the recharacterization or distribution. You can create this attachment in TaxAct® and the return will still be eligible for electronic filing:
- Click on the Federal tab. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
- Click Retirement Plan Income to expand the category and then click IRA Distribution Explanation
- Enter the statement information on the following screen
The IRS Instructions for Form 8606
, pages 3-5, provide the most definitive guidance for reporting recharacterizations. Because TaxAct supports the attached statement for the recharacterization, you will still be able to electronically file a return containing this statement.