Hi dmertz,
Thanks for your response. My concern is as follows:
I initially contributed towards Roth IRA (post tax $$) during the tax year (yr2020) but later while filing taxes the following year (yr2021), I understood my MAGI is beyond the limit and the contributions are subject to penalty. So, as per the responses given for other posts I read on Turbotax, I did the re-characterization to Traditional IRA. Even thought these funds don't qualify for deductions, contributions to Traditional IRA are tax-deferred (pre pre-tax $$) basis.
My question is,
(1) After re-characterization from Roth to Traditional IRA, I'm expecting to receive a tax portion for the contribution I made refunded back to me. Is my understanding right and is there a way to get that refund ?
OR
(2) Is there a way to convert this Traditional IRA to Roth IRA without having to pay Federal/State tax ? Coz if I have to pay taxes after conversion, that means I'm subjected to double taxation, which doesn't make sense.
Please advise. Thanks.
