dmertz
Level 15

Retirement tax questions

I'm not sure what you mean by "2022" Roth IRA.  The attributable gain or loss is determined over the entire account, not just the investment that you made with the excess contribution unless the account contains nothing but the excess contribution.  I'll assume that you mean that you contributed $6,000 to a previously empty Roth IRA account.

 

You then apparently did a recharacterization of your Roth IRA contribution to be a traditional IRA contribution instead by moving the entire contents of the Roth IRA to a traditional IRA.  There is never a penalty on a recharacterization.  Your $6,000 Roth IRA contribution became a $6,000 traditional IRA contribution and the $100 of earnings in the Roth IRA became $100 of earnings in the traditional IRA.

 

If your traditional IRA contribution was nondeductible (resulting in $6,000 on line 14 of your 2022 Form 8606) and you have no other funds in traditional IRAs, the $6,000 of basis in nondeductible traditional IRA contributions reduces the taxable amount of your $6,150 Roth conversion in 2023 to $150 on your 2023 Form 8606.