To recap, you made
- a recharacterization in 2021 of $1,000 for 2020,
- a $1,000 contribution in 2020 for 2020, and
- a $1,000 contribution in 2021 for 2020.
So technically you had only $1,000 in 2020 to convert because the rest wasn't put in the traditional IRA until 2021 for 2020. Now, if the $1,203 also converted in 2020 weren't earnings where did they come from? Did you have a balance in the traditional IRA before? Did you have a basis from 2019 (nondeductible contribution for 2019)?
I want to make sure we are not missing an important detail here and you pay unnecessary taxes.
@dhuynh44
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