I contributed $7000 to my Roth IRA last year (2024) and realized this year that I made too much money to contribute therefore I need to recharacterize to a Traditional IRA. When I asked my broker, they said that the whole amount recharacterized would be $8096 ($7000 + $1096 - Gains).
- Is the contribution only being recharacterized or the contribution + gains?
- If contribution + gains, does that mean the total recharacterization ($8096) is considered a contribution to the Traditional IRA?
- Can I withdraw the $1096 without penalty?
- Do I need to wait for a new 5498 + 1099-R prior to filing my 2024 tax return?
