@Opus 17 In the case we are talking about (Roth IRA contributions recharacterized to Traditional IRA during the same tax year of the contribution) and in your first example (rechar $7000 Roth contrib + $500 NAI to Trad IRA)
am I correct in thinking that is the net effect is the same as making a $7500 contribution to the Traditional IRA?
If so then if that amount ($7500) is say, $500 over the taxpayer's traditional IRA max contribution, $500 (plus its own earnings) will have to be withdrawn as an excess contribution. Right?
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