I have a similar situation.
In July 2021 I made a $6000 contribution to a Traditional IRA for tax year $2021 (there was previous years money already there).
In February 2022 I found I was only eligible to deduct $970. I should have left the rest in as a non-deductible IRA contribution, but made the mistake of asking fidelity to recharacterize the $5030 to a Roth IRA. They calculated that the total with gains was $5085 and moved that to a new Roth IRA. I received a 1099R for the $5085 with code R.
The account has lost 70% of its value and now only has $1500.
Since it is past the Oct 2022 deadline, I think I need to withdraw the contribution and pay the 6% penalty. But is withdrawing the entire $1500 enough?
Do I need to amend my 2021 return or just report everything on my 2022?
