recharacterization: the original amount to the first IRA you report as contribution to the second IRA, earnings move but are ignored.
report this on your tax return for the year during which the contribution was made.
"Will I incur any 10% early distribution penalty given the above has been done before tax deadline plus extentions?"
This is my understanding based on my research.
[positive earnings removed are no longer penalized 10% if you are under age 59 1/2. (eliminated in 2023)
You must have a) filed by tax day, or b) requested an extension of time to file by tax day.]
I'm not sure the two sentences in brackets are correct so I'll ask @dmertz to confirm or clarify.
@dmertz
@Guavalord54
