dmertz
Level 15

Retirement tax questions

If you are considering recharacterizing, it doesn't seem to make much sense not to just recharacterize the entire excess contribution.  If you contributed $6,000, you recharacterize $6,000 and the $6,000 adjusted for any attributable investment gain or loss is transferred to to the traditional IRA.  If the gain is $500, you still just recharacterize $6,000 and $6,500 is transferred.

 

But to answer the question that was asked, yes, you can do a combination of recharacterizing and return of contribution.  The order in which you perform these and and how you split the excess between recharacterizing and return of contribution don't matter (except perhaps for slight differences that would result from investment gain or loss incurred between these two transactions, if any).