In January 2026, I contribute 7,000 and 7,500 for 2025 and 2026. My broker restricted the money for 1 week to allow me converting it to my Roth IRA account. Your system said that it means that you first contributed money to a traditional IRA, but then later moved your money to a Roth IRA. This is sometimes referred to as a "recharacterization." A recharacterization such as this is different from a Roth conversion because your Roth IRA contribution is for the same year as the original traditional IRA contribution. So, the money would be both contributed to the traditional IRA and subsequently moved to the Roth IRA during the time period of January 1, 2025 until April 15, 2026 unless you file an extension in which case you would have until October 15, 2026.
According to my broker’s action, it was a conversion not a recharacterization. And my research said once you convert a non-deductible traditional IRA to a Roth IRA, you cannot move it back to a traditional IRA. In Feb. 2027 my broker will issue 1099 B to me for 2025 and 2026 conversions. When filing 2026 income tax return, I will have problem with your software. Please remember to modify your 2026 software about IRA contribution when you make it. Broker was only held money for 1 week. Then I can convert the money.
