Hi all,
Quick question. Trying to understand this situation please.
$1237 recharacterized from Roth to Traditional in 2020 for $1000 contributed in 2020
$1317 recharacterized from Roth to Traditional in 2021 for $1000 contributed in 2020
Would Line 1 of Form 8606 be $2000, or $2554? When the question under "Deductions and Credits":
"Enter Your Roth IRA Contributions": $2000
"Tell Us How Much You Transferred": $2554 ($237 + $317 earnings)
It populated Line 1 on 8606 as $2554. Would this be correct even though I actually only contributed $2000 nondeductible?
Recharacterizing an amount from Roth to Traditional ADDS to your nondeductible contribution to Traditional correct?
Thank you!!!
