I'm aware of the difference between recharacterizing a current tax year contribution (you have up until the date you file, including extensions) and converting. I was very surprised to hear from Schwab that I did not have to limit my recharacterization to shares I'd bought since the contribution in January (you can choose to take your $ amount recharacterization by moving positions to your Roth, cash, or a combination). So far I have just requested my recharacterizations by moving stocks I've bought since January, and a small amount of cash as necessary to make up the difference. But now since I was told this earlier today, I'm wondering if I can transfer shares that have gone up even more, that I bought long ago, and how they would figure the earnings on those. I know the formula is Net Income (earnings treated as being earned in the Roth) = Contribution (recharacterized amount) * (Adjusted Closing Balance - Adjusted Opening Balance)/AOB. My first recharacterization used the AOB of $0 in the numerator and $7500 in the denominator, and the ACB was the entire account value including earnings on the day of the recharacterization. But now I don't know what the AOB would be months later, when I've already recharacterized over $4700 but stocks have gone up even more. I recharacterized a small amount ($1200) last week and they figured NI was about $120 so transferred $1320. But I don't know what they used for AOB, though I could probably look at historical data and figure out what ACB was that day.
