Code N (indicating recharacterization) is not issued for a Roth IRA conversion. As you mentioned a recharacterization and conversion is not the same. When you make a recharacterization it is like you never made the traditional IRA contribution but instead made a direct Roth IRA contribution.
Right now this Form 1099-R with code N indicates you made a Roth IRA contribution instead of making traditional IRA contribution and then converting it because of the recharacterization.
If you cannot make Roth contributions because of your income then you will have an excess Roth IRA contribution. Excess contributions are taxed at 6% per year for each year the excess amounts remain in the IRA. The tax can't be more than 6% of the combined value of all your IRAs as of the end of the tax year.
If you requested a conversion instead recharacterization then you need to let your custodian know that they issues an incorrect Form 1099-R. They will need to issue you a corrected Form 1099-R.
If you indeed requested a recharacterization and therefore made a Roth IRA contribution then please see What happens if I made an excess Roth IRA contribution because my modified adjusted gross income is ...
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
