@sf29 , you did not say if the Roth IRA contribution that resulted from the recharacterization was and excess contribution or not, but if you are married, that would likely be the case. Otherwise, the Roth IRA contribution probably was not an excess contribution. I'll assume that it was an excess contribution since you are posting on an old thread about excess Roth IRA contributions
For the $5,030 excess Roth IRA contribution made for 2021, you must file 2021 Form 5329 to report that and pay the 6%, $302 penalty. You also must include 2022 Form 5329 with your 2022 tax return and either be able to apply some or all of the $5,030 excess as your Roth IRA contribution for 2022 or you must pay a 6% penalty on the lesser of $5,030 or the 2022 year-end value of your Roth IRAs.
To resolve any remaining excess in 2023 when your balance in Roth IRAs is less than the remaining excess, you'll need to take a regular distribution of what remains in your Roth IRAs. In such a case, the instructions for Form 5329 say to include the entire excess from line 18 on Form 5329 line 20, not just what you took out, eliminating your entire excess. 2023 TurboTax will do this for you when you indicate to TurboTax that you had no Roth IRAs "open" on December 31, 2023.
If your 2021 tax return included Form 8606 showing a $5,030 nondeductible traditional IRA contribution, you must amend to remove that.
