@DanaB27
Thank you. Are you able to break down how the pro-rata rule is calculated? She only contributed $4580 this year with a basis of $1899 from 2020, so why is $5420 taxed?
Does the 1099-R of $7200 factor into any of this? If the $7200 is amount converted to Roth in year 2021; and my institution messed up with an extra $1000 recharacterized and supposedly converted back to Roth would this change the amount taxed if my 1099-R amount was lower?
Hopefully trying to understand more. Thank you
