Appreciate the response. Please see below for some clarifications
- The original contribution was 1/2/2020. The recharacterization occurred on 3/3/2021 (not 3/3/2020, thank you for catching that error).
- I told the bank to recharacterize the Roth contribution to a Traditional IRA which occurred on 3/3/2021
- On 3/4/2021, that recharacterization was converted from the Traditional IRA back to a Roth IRA (back door)
- So since I cannot reverse the conversion, I'll pay the 6% penalty for 2020 and claim prior year excess contribution on my 2021 tax return (for the 2020 tax year)? Assuming yes, then no further money transfers to occur now and it will sort itself out when I complete 2021 taxes. Is that all correct?
Thank you again.
