I will be as detailed as possible as I am in a fix how to figure out and file my taxes.
Before filing my Taxes in 2021 I made a 6000$ contribution to a traditional IRA and wanted to use a back door Roth conversion. The Merill Edge agent however asked me to fill a recharacterization form and not knowing what it is I filled that. and 6000$ were recharacterized to a Roth IRA. now my income does not let me contribute to Roth at all. Later in the year I did the same thing and in december 2021 put 6000$ in a traditional IRA and than recharacterized it to the Roth account. I have received two 2021 forms 1099-R one with an R code ( old year contribution) and the other with an N code.
In April 2022 filling my taxes I realized how big of a mistake is made. I have withdrawn all the money from the roth IRA and closed it on April 6th.
Reading online forms.
I have amended my 2020 Tax return and have included the recharacterization to Roth and have amended it and will be mailing it in to the IRS with 6% penalty for the excess contribution to Roth on the amount recharacterized from 2020 contribution. ( please advise if this is the right step)
Please advise regarding 2021 Taxes.
do I pay again 6% penatly on the 2020 recharacterization since the money was not withdrawn before Dec 31st.
I understand that I dont have to pay any penalty on the 2021 contribution as it was withdrawn before the Tax filling deadline deadline.
In turbo tax when I select I withdrew 12000 dollars from the Roth IRA ( the total 2020 and 2021 contributions) it give me error in smart check and following are the two errors I am getting. Also can not e-file with these errors just keep going in a loop.
Will really appreciate the help to get this right.
