Thank you so much for the detailed explanation.
Just so I understand - all I will need to submit is 8606, which after following your instructions Turbo Tax will generate for me. How does the tax work on the recharacterization? Since it was a Roth contribution I already paid taxes on the principle amount. When moving it to a Traditional IRA through this process, will I have to pay taxes on it again when I take the money out?
With the 1099-R form that I get in 2022 - this will show the recharacterization I did in 2020, but does not affect my 2021 return. Will I report the 1099-R form on my 2021 return or do I have to go back and amend my 2020 return? Is this form just a confirmation for the IRS that the recharacterization happened or does my financial institution need to send in documentation as well?
Thank you in advance!
