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. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Retirement Plan Income in the Federal Quick Q&A Topics menu to expand, then click IRA distribution explanation.
  3. Continue with the interview process to enter all of the appropriate information.

IRS Instructions for Form 8606 Nondeductible IRAs provides 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.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.