In 2022 calendar year we made a traditional IRA contribution, on the same day we did a distribution, and deposited the money into one of our Roth accounts. The idea was to do a Roth backdoor conversion since we expected our MAGI was too high.
It turns out our MAGI was not too high so we could have made the original contribution directly to our Roth account, so we want to treat this as a recharacterization.
The issue is we received a 1099R with the code of 7-Normal Distribution, which makes the distribution taxable. But, if we want to recharacterize the original contribution should our account administrator issue us a new 1099R with a code of N for a recharacterization of an IRA contribution to a Roth within the same year?
Also, would this code change, if it is possible, make the distribution non-taxable?
Thanks for helping.
