O.K. I checked and they did do a ROTH conversion, so that's good. You are very helpful. One more question others may be wondering.
- In January 2021, I deposited $6000 into ROTH IRA.
- Then, in January 2022, I did Recharacterization of $6000 from ROTH to Traditional IRA "for" 2021 tax year.
- Then I found out that income limits disallowed any portion of this money to be "Before Tax" IRA deposit.
- So then in April 2022 (for 2022 tax year) I did ROTH Conversion from the IRA back to ROTH for full $6000.
So question is..., since the original IRA deposit was NOT allowed as Before Tax (due to exceeding income limitations), and the $6000 deposit, was the FIRST and ONLY deposit made to this, or any other Traditional IRA I own, then as I understand it both of the following are True:
- Because the IRA was disallowed as after tax income, and even though it was deposited in previous tax year (2021) than Roth Conversion (2022), I will not owe any taxes on the ROTH Conversion, since 100% of the money in all combined IRAs was the $6000, and 100% of that $6000 was not tax deferred (aka Before Tax) income.
- Even though I did a ROTH conversion for this tax year (2022), I can still deposit an additional $6000 into same ROTH for 2022 (so long as stay below income limitations).
Do these all sound correct?
Your help is so very appreciated!
