IRA - Distribution Explanation Attach Statement

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:

  1. Click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
  2. Click Retirement Plan Income in the Federal Quick Q&A Topics menu to expand the category and then click IRA Distribution Explanation
  3. Enter the statement information on the following screen

The IRS Instructions for Form 8606 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.