Thank you for the helpful reply. When reporting an excess contribution, ttax asks if we recharacterized any of the contribution to a traditional IRA. That might avoid the 6% penalty. But one thing I don't understand is that we've already paid income tax on the amounts we put into the Roth IRA; and which a traditional IRA, withdrawals are taxed as income. We don't want to pay income tax twice on the same money. Would the amounts that have already been taxed somehow be flagged, and not be taxable in the future?
