There is no 6% penalty or any other penalty for a recharacterization. If it is showing a penalty then you did not follow the steps above in the IRA contribution interview.
A recharacterization is simply making the contribution to a Traditional IRA instead of the Roth as if the Roth never happened at all. No penalty and you only report as I said above as long as it is withing the time, limits,which you are.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
