I contributed $6,000 to a traditional IRA (non-deductable) for tax year 2020. I wanted to do a backdoor Roth IRA conversion but due to some confusion/bad advice from the retirement account custodian, they had me fill out a recharacterization form where the traditional IRA (non-deductable) was recharacterized to a Roth IRA. Fast forward to 2022, doing my tax filing for Tax year 2021, I realize the mistake with doing the recharacterization. So I essentially contributed to a Roth IRA for tax year 2020, even though my MAGI for 2020 was too high do a regular Roth IRA contribution. I'm trying to see if the custodian will reverse this transaction on the backend as I think they're the one that gave me the bad advice and the wrong form to fill out, but I'm not sure if I will be able to prove it is their mistake or it was solely my mistake. How do I fix this? Can I recharacterize it back to the traditional IRA account? If I can't recharacterize it back, what are the penalties? Can I just withdraw the $6,000 from the Roth IRA account or what is the best method to resolving this with the least amount of consequences?
Thanks,
keaang
