Thank you Fanfare.
Yes, income threshholds are met etc. for the contribution to be designated as deductible IRA. And the 10% penalty is N/A in this situation.
The amount taxable in 2020 is significantly less than the amounts "repaid"/"re-contributed", hence the pondering of offsetting the 1/3 inclusion with a portion of the "repayment" and then designating the remainder as a deductible IRA contribution for 2020. Not seeing anything as yet that prevents this. But as I said to Wendy, I discovered I'm better off letting the "excess 2020 repayment", rollover to 2021 and offset the 1/3 inclusion in that year in a higher tax bracket.
