@dmertz wrote:
Your account value increased by 17.647% over the computation period. That means that your $7,000 contribution increased by the same 17.647%. Moving funds around inside your IRA does not change this.
I don't understand why you say that anything has moved around in the account. 7,000 -> 7,500 is a 7.143% increase despite the overall 17,000 -> 20,000 of 17.647%. But let's stick to the all cash scenario since that should be simpler.
So with $7,000 contributed in 2024 and held in cash through the recharacterization date, the $7,000 contribution becomes $7,000 while the account overall goes from $17,000 to $19,500. And somehow this means the $7,000 which is still $7,000 cash had a gain of 14.706%? Even though making no contribution at all would result in the same $2,500 increase?
