Hi,
I have a similar situation where in I contributed 6000 to Roth directly (not sure how that happened) on 2/21/20. I realize now that I wanted to contribute to a non deductible IRA but may have made a mistake. I am not allowed to contribute to traditional IRA as I am over the income limit so i usually do a non deductible contribution and convert to Roth.
I believe that I can now recharacterize my Roth amount of 6000 plus earnings of 1700 after a proportionate calculation (i have more than 6000 in my Roth account) to my traditional IRA as non deductible and then convert it back to Roth.
If the above is correct, I have to specify that i made a Roth contribution in 2020 and then select that I recharacterized the contribution plus proportionate earnings and that should be it. My 8606 should show it as non deductible contribution for 2020. And my 1099-R received in 2022 would show the conversion to Roth.
However, when i enter 7757 as recharacterization in Turbo tax it says that i have 1757 excess contribution. So I believe i need to withdraw the earnings amount and pay tax on it and also a penalty on only the earnings.
IS that right?
Thanks,
