Hi Turbotax Community,
I just recently requested a return of excess plus earnings from the investment company that manages my ROTH IRA since I found out that my income was too high to contribute. After the return of excess, the $6000 was then contributed for 2021 to a traditional IRA with the same company. The earnings were also contributed to the traditional IRA, but as a 2022 contribution.
Does that whole process describe a recharacterization?
I would enter $6000 under both the traditional and ROTH IRA contribution sections even though the $6000 was removed from the ROTH IRA, correct?
Am I subject to an early withdrawal tax penalty under these circumstances?
Thank you for any help!
