On 01/03/2024, my friend contributed $6,500 to Vanguard Roth IRA for 2023. Her AGI is below $60K. Now, she realizes if she contributes to a traditional IRA, her tax will be reduced by $1,633. So, she wants to recharacterize Roth IRA to traditional IRA for 2023. She called Vanguard, they said they can recharacterize Roth IRA contributions to IRA for 2023. But they said the 1099-R won't be issued until Jan. 2025. They said that 1099-R will be for 2024 since the recharacterize in 2024. When she files tax 2023 now, she should select that she contributed to Roth IRA. Is that correct? If the 1099-R shows for 2024, does it mean she won't get an IRA tax deduction for 2023 even though she recharacterized it as a traditional IRA for 2023? That 1099-R affect her tax 2024 and it won't benefit her tax 2023? Am I missing something? If that is the case, then she shouldn't recharacterize Roth IRA? Thank you.
