The former penalty on early withdrawal of positive earnings is no longer.
Recharacterization:
recharacterization: the original amount to the first IRA you report as contribution to the second IRA, earnings move but that is ignored.
report this on your tax return for the year during which the contribution was made.
Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA.
Line 4b of form 1040 is not involved
