Hi!
Here is my problem:
I converted a few of my losing stocks in my non-deductible IRA to Roth IRA (through backdoor) this year, the first time. It is a partial conversion, I still have holdings in my IRA account.
When comes to the screen to ask if I have a recharacterization, whether I answer Yes or No, they all dont look right.
First, I answer No recharacterization, then follow the steps, enter the number in my 1099R form, and the total value of my IRA accounts at 12/31/21, then it tells me to pay $10,000 more tax! - But that's not right.
Because I specifically converted the stocked I have lost money on, so I should have no gains on these stocks, so technically, this conversion should be tax free (because the base contribution is after tax, and I had no earnings on these stocks; although my overall IRA account had gains, but the gained part is not converted).
Then I tried to answer Yes. Follow the steps, then in the end, it says I am not eligible to contribute to Roth, I have to withdraw my "contributions" to Roth IRA. - I think it treats my distribution from the IRA to Roth IRA as a contribution, instead of a conversion.
I am so confused! Is a backdoor nondeductible IRA to a Roth a "Recharacterization" or not?
If not, where do I enter the specific stocks conversion values?
Please help! Thanks!
JerseyBird68
