Hi all, I need help in figuring out my Roth IRA characterization. I opened a Roth IRA account in 2019. I file taxes as "Married, Filling Jointly".
- I contributed $6000 in 2019. My adjusted gross income for 2019 was $192,XXX
- I contributed $6000 in 2020. My adjusted gross income for 2019 was $249,XXX
- I contributed $6000 in 2021. My adjusted gross income for 2019 was $310,XXX
In total, I have contributed $18,000 in my Roth IRA account in these 3 years. I bought stocks with this $18,000. Currently the value of the Roth IRA account is $8,700 due to market volatility. Since my adjusted gross income for 2020 and 2021 is higher than the allowed limit, my Roth IRA contribution needs to recharacterized. I have few questions.
For 2021 contribution, I am going to recharacterize my contribution for $6000 into traditional IRA. With this $6000, I bought stocks (AMC) and the current value for these stocks is $2200 approx. Did I fill out this form correctly? For Part 2b, I entered the amount $2200 after considering losses. Should the amount in Part 2b be $2200 or the original contribution amount of $6000. See below.
For 2020 contribution, I never requested Roth IRA recharacterization into traditional IRA. What are my options now to prevent paying 6% penalty year after year? Can I still request recharacterization? If not, can I roll over this contribution from 2020 to 2022, since my projected AGI for 2022 will be less? Or is there any other option that I can pursue?
