kren1011
Returning Member

Retirement tax questions

Hi @DanaB27, I have a similar situation.

 

  1. In 2021 I accidentally contributed $6000 directly to my Roth IRA.
  2. I recharacterized it to a traditional IRA with a gain of $50 (total $6050).
  3. I did a backdoor Roth transaction and moved $6000 (out of the $6050) from my traditional IRA to my Roth IRA 
  4. I got 2 1099-Rs, one with a distribution code of N for the recharacterization, another for the backdoor Roth

I have two questions:

  1. Do I need to count the recharacterization as an additional IRA contribution? In addition to the backdoor roth - so both traditional and Roth IRA contributions?
  2. if I do need to count both, does the traditional recharacterization need to be for $6050 (inclusive of the gain)?

Thank you!