@Sarmor wrote:
Ok so there is going to be a consequence to directly putting $ in Roth and recharacterizing 5 months later? The consequence is that I will eventually have to pay taxes on the earnings.
So can you clarify that I won’t have to pay taxes on earnings until next year on 2021 tax form when I report the distribution per 2020 1099R? This year I don’t have to pay but I will next year?
You pay tax for the year that it is taken out as a distribution or conversion. There is not tax on a recharacterization.
**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.**
