I contributed $6000 to my Roth IRA for 2020 that I now have to remove because I exceeded the income limit last year. My plan is to recharacterize it and then do a backdoor Roth conversion for 2021, but I have some money already in a pre-tax rollover IRA from previous employers (around $20k). My plan is to:
1. Convert the pre-tax 20k in the rollover account to a Roth IRA
2. Recharacterize the 2020 excess Roth ($6000 + earnings) into the now-empty rollover IRA and then convert it to a Roth (the backdoor conversion)
My understanding is that the 20k plus the earnings from the excess Roth will count as income for 2021 which I will pay taxes on next year. However, I will not have to pay any further taxes on the $6000 originally from the excess Roth because it is non-deductible. Is this correct?
