That's the same formula I gave above. the problem is trying to determine the AOB (and maybe the ACB since you have to account for previous recharacterizations). At any rate, I think the net income is just going to be that % of earnings allocatable to the amount I'm trying to recharacterize now (in my example, $3000) that was earned SINCE the contribution was made. So I made the contribution in January, the closing value will only include net earnings on the whole account from January until now, so I *think* that if the account value was 0 on January 1, and $7500 immediately afterward, and now (after some previous recharacterizations) it's $3100, you'd have to look at it and say add those recharacterizations (let's say it was $4700 including $420 of earnings) so the ADJUSTED closing value would be $3100+4700= $7800, so that was $300 worth of earnings, and they already included $420 earnings in previous recharacterizations as of last week, so there are no earnings attributable to the contribution that's remaining in the account. Since I put in $7500 and took out $4280 ($4700-$420 earnings), if I ask for $3000 to be recharacterized now, there is no net income, and my total recharacterizations would be $7280 leaving only $220 as my traditional IRA contribution, even though the account balance after the last recharacterization would be $100 - so I lost $120?
