I retired in May, 2022. In Feb of 2022 I made a $7000 non-deductible contribution to my traditional IRA. A week later I did "backdoor" conversion of the $7000 to my Roth IRA. In November 2022 I took my first RMD (my age is 78) from a separate 401k plan. I then learned that I was not permitted to make the "backdoor" conversion to the Roth IRA because of taking the RMD. What can I do now to avoid an annual 6% penalty on the $7000 (plus earnings) that I converted.? Also, my Turbotax 1040 form shows the $7000 converted money as a taxable distribution even though the converted amount came from a non-deductible contribution to the traditional IRA. Of course, I am willing to remove the $7000 from the Roth IRA and count it as part of my RMD for 2023. If I do this, will I no longer face the annual 6% penalty assessed for an "excess contribution" to the Roth IRA?
Thank you.
