Hi - I could use some help determining how to report my taxes for the below situation.
When I began filling out my taxes in 2024 for the tax year 2023, I realized that my income for 2023 was above the limit for Roth IRAs. I contributed $6,500 during 2023 before I received a bonus that put my income over the threshold, and I have since realized gains and dividends on that contribution.
In 2024, I have gone through the process of recharacterizing the total amount in my Roth IRA to a Traditional IRA I opened with Vanguard. The majority of this total amount has been recharacterized, however there is still a small dividend (less than $20) that is still in my Roth IRA and Vanguard is working on recharacterizing it.
My first question is if I need to wait to file my taxes until this dividend is recharacterized to the traditional IRA (I am concerned it will not be completed until after taxes are due).
I am also confused about how to file my 2023 taxes as I go about this process. Note that my plan is to do a backdoor conversion of the total amount back to the Roth IRA once the dividend recharacterization is complete.
For my 2023 taxes, should I state that I contributed to both a Roth and Traditional IRA, or just a Roth IRA? Additionally, if I am able to complete the backdoor conversion before I submit my taxes, do I have to note that anywhere in my 2023 taxes, or will that just impact my 2024 taxes?
Thank you!
