@cymantha - A recharactorization as opposed to a return of contribution, is treating the Roth contribution as if it was a Traditional IRA contribution when it was made. It must be reported on the 2014 tax return either as a deductible Traditional IRA contribution (if you qualify for and wish to take the deduction), or it must be reported as a after-tax "basis" in the Traditional IRA and reported on a 8606 form as part of the 2014 tax return.
All the money in the Roth, including any earnings would be recharactorized to the Traditional IRA.
A return of contribution, on the other hand, would report the earnings in box 2a of the 1099-R which would be taxable income on line 7 of the 2014 1040 form.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
