Thank you Dana. Unfortunately, Merrill Edge's recharacterization form specifically says I am responsible for calculating the earnings or losses on the excess contributions, and to consult a tax advisor. I researched and found some examples from Federalregister.gov and from Fidelity. (Here's the federalregister example) However, Merrill does not provide a value of the portfolio the day prior to my first contribution. Contribution was made on Feb. 18, 2022, and the only portfolio value Merrill could provide is Feb 1, 2022, so I will have to use that value, I think.
In a related question, is there a required time by which I should do the backdoor Roth conversion after contributing or recharacterizing into a traditional IRA? I read this sentence in one of the answers to questions and unsure if it means I should initiate a backdoor conversion within 60 days of contributing to a traditional IRA: "There's almost always a time limit of 60 days to complete a conversion or rollover, with large penalties if the limit isn't met."
I wanted to do a Roth conversion for $1000 that I contributed to a traditional, plus the $6000 Roth contribution I am recharacterizing (with losses, it's $4500). Both are not deductible because I am above the required income level last year. The Merrill form to convert has questions about Withholding taxes. Should I select not to withhold taxes since both contributions were not deductible in the first place?
Thank you very much.
