recharacterization: the original amount to the first IRA you report as contribution to the second IRA, earnings move but are ignored.
You must use a trustee-to-trustee transfer, before the due date April 15,2024.
You will instruct trustee to calculate the allocable earnings.
report this on your tax return for the year during which the contribution was made.
Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA.
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If you plan to leave the money in the Traditional IRA there will be no tax consequence.
If you are eligible for a deduction you can take a deduction for a 2023 contribution of $6,000 ( not $6,400).
Otherwise declare it non-deductible and it adds $6,000 to your IRA basis. File Form 8606.
@kckoo84
