In 2022, I contributed $6,000 to my Roth IRA, which I recharacterized to a traditional IRA in March 2023. The recharacterized amount, including earnings, was $8,400. Initially, I believed that I had over-contributed to my traditional IRA since the total amount exceeded the $6,000 annual limit. Consequently, I withdrew the excess $2,400, which resulted in taxes and penalties on the earnings. Now, I have two questions regarding this matter:
- Should I fill out $6000(contribution) or $8400(contribution plus earnings) when asked about the "Amount switched from a Roth IRA to Traditional IRA"? Did I make an excess contribution to my traditional IRA after recharacterization?
- If it turns out that the recharacterization did not result in an over-contribution to my traditional IRA, how can I fix the mistake of removing the excess contribution?
I have been struggling with these questions for some time. I would really appreciate any help in resolving this matter as the deadline of tax filing approaches.
