In Oct of 2022 I realized that my wife and I would be over the income limit for the ROTH we were contributing to, so I contacted Vanguard and had a recharacterization done into a traditional IRA. We had contributed $4600 at that point, but because of market losses the amount put into the traditional IRA was $3572.
I just called Vanguard to get help with getting all of this information and entered it into Turbotax, so now my return is showing the amount that was recharacterized as a $4600 traditional IRA contribution.
My question is based on something the Vanguard rep told me. She had advised me that I may want to put the money that I recharacterized into the traditional IRA back into the ROTH via the backdoor method. And apparently if I didn't do that, it would cause issues going forward of me having to track that amount manually year after year.
I didn't totally understand this and I'm wondering if anyone can shed some light on if just leaving it in the traditional IRA would cause some kind of problem going forward. I've looked online and through these forums and I couldn't really find anything indicating that this would be a problem. I don't want to convert it back to a ROTH if that is going to make things more complicated either. It's not a particularly large amount of money, so I'm content to just do whatever is the easiest, less complicated thing to do.
Thanks in advance for any help you can provide.
