Thank you for clarifying. Yes, I'm wanting to recharacterize the 2023 contribution as Roth rather than traditional, so this would be a recharacterization, not a conversion. I actually don't know if the $7500 I contributed in January has gained or lost overall, since it's part of a larger traditional IRA. However, from a tax perspective, our MAGI is well below the Roth limits, so it's not likely to make a difference in our tax bill either way.
One follow up question: if I perform a recharacterization of the 2023 contribution from traditional to Roth, will this amount be subject to the 5-year requirement prior to taking a penalty-free withdrawal? Or does the IRS essentially consider this contribution as having been a Roth contribution from day one?
Thank you so much for your assistance.
