Hi DanaB27,
Thank you very much for your answer! Appreciate it.
One last follow-up question about the explanation statement from your Answer in step 9. Should I only explain the Recharacterization? or do I also need to explain the Back Door Roth IRA? The following is my statement and not sure if that is ok, please advise, and thank you again for your time!
Statement: "I contributed $7,000 to my Roth IRA on January 10, 2025. However, on February 12, 2025, I realized that my income exceeded the Roth IRA limit. I contacted my brokerage and completed a recharacterization from my Roth IRA to a Traditional IRA. The total amount recharacterized was $7,095.75 (original $7,000 + $95.75 earnings). On February 14, 2025, I completed a Backdoor Roth IRA conversion by transferring the money from my Traditional IRA back to my Roth IRA. The amount converted was $7,183.37 ($7,095.75 + $87.62 earnings while in the Traditional IRA for two days)."
