@fanfare :
The calculations are for recharacterizations, not returns of contributions, but the NIA calculation is the same. Yes, the deadline to recharacterize the contribution for 2022 is October 16, 2023 if by April 18, 2023 the 2022 tax return was filed or a request for an extension for filing the 2022 tax return was made, otherwise the deadline was April 18, 2023.
@talktoandyli :
The amount to recharacterize for 2022 is $6,000. The amount to transfer is the adjusted amount. Similarly, the amount to recharacterize for 2023 is $1,500. The custodian should calculate the adjusted amount to transfer when you provide them with the requests to recharacterize, $6,000 and $1,500.
Your calculations are incorrect. You calculations appear to be using incorrect Adjusted Opening Balances. Also, both calculations are incorrect because you are dividing by the ACB instead of the AOB.
Given the general market performance over the period, for the recharacterization of the $6,000 contribution made for 2022 I'll assume that the balance in the IRA was $15,542.86 immediately prior to the first contribution for 2022. I'll assume that on the date of the recharacterization the balance will be $21,298.64:
AOB = 15,542.86 + 6,000 + 1,500 = 23,042.86
ACB = 21,298.64
NIA = 6,000 * ((21,298.64 - 23,042.86) / (23,042.86) = 6,000 * (-0.075695) = -454.17
In other words, a loss of $454.17 The amount to transfer to the traditional IRA would be $5,545.83. Note that the $1,500 contributed for 2023 is an addition during the computation period that must be included in the AOB.
For the recharacterization of the $1,500 contribution made for 2023, I'll assume that the balance in the account was $18,189.47 immediately prior to the first of the contributions for 2023. I'll assume that on the date of the recharacterization the balance will be $21,298.64:
AOB = 18,189.47 + 1,500 = 19,689.47
ACB = 21,298.64
NIA = 1,500 * ((21,298.64 - 19,689.47) / (19,689.47) = 1,500 * 0.081727 = 122.59
In other words, a gain of $122.59. The amount to transfer to the traditional IRA would be $1,622.59.
I suspect that the account balances that you indicated are not the exact amounts to be used in the calculations because they do not represent the actual balances on the dates defining the computation periods, so you'll need to make the calculations using the correct balances.
