What a mess, made a bit worse at each step, it seems. As I understand it, the amount that you should have taken as your RMD you converted to Roth, which the law prohibits despite what Schwab said, and the first funds distributed from your IRA in an RMD year are the RMD; the RMD is required to be satisfied before converting any other amounts. You then took a distribution which you subsequently rolled back to the traditional IRA (which is fine except that it unnecessarily triggers the one-rollover-per-12-months limitation). If my understanding is correct, you have a failed Roth conversion that has resulted in an excess Roth IRA contribution that is subject to penalty unless corrected by a return of excess contribution before the due date of your tax return, including extensions. Because the Roth conversion is a failed conversion, you have no 2023 Roth conversion. Either the Schwab rep was not aware that the Roth conversion was done with your RMD or they are poorly trained with regard to the laws governing RMDs (which would not surprise me).
