I called my custodian today. It looks like there are capital gains.
Can you help me understand why I need to pay taxes on the gains if we are taking it out of the Roth IRA just to essentially put it back in?
I'm having a hard time wrapping my mind around the concept: a direct Roth IRA contribution would not be a taxable event. A direct Roth IRA contribution recharacterization to traditional and back into Roth IRA has tax liability. In the end I'm still moving the same amount of money, but one has tax implications?
