Are you sure that your MAGI is not also too high to contribute to a Roth? - see below.
The financial institution should move both the contribution and earning to the other IRA.
The proper way to report the recharacterization and earnings is to enter the 2020 IRA contribution in the IRA contribution interview section and then say yes to "Did you switch from a Traditional to a Roth IRA - recharacterize".
The amount The amount of the original Traditional contribution must be entered - not any earnings or losses.
Then TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharactorized.
There is no tax or penalty on the before-tax earnings since the earning were simply switched into the recharactorized account.
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See this IRS article for Roth contribution limits:
https://www.irs.gov/retirement-plans/roth-iras
**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.**
