Ok, it seems this recharacterization to traditional IRA will now mean $5400 will get taxed twice. My initial $6000 Roth contribution was already taxed. So taxed again for 401(k) withdrawals in retirement or when converting from traditional IRA to Roth. Is taxation for conversion of traditional IRA to Roth IRA is just $5400 or $5400 and gains? If I convert traditional IRA to Roth IRA this year, can I make an additional contribution to Roth IRA for 2022 via the Backdoor Roth?
Otherwise, my other option is to cancel the recharacterization and withdraw the excess Roth contribution plus earnings for 2021. And be able to do a Backdoor Roth for 2022 with no taxation.
@DanaB27
@dmertz
@macuser_22
@Opus 17
