You can *always* contribute to a Traditional IRA. If you are covered by a retirement plan at work and your AGI exceeds a certain amount then you cannot *deduct* the contribution, but you can still contribute. The gains are not a contribution and would have been earned in the Traditional IRA had you contributed to it in the first place.
The characterization must be entered for the tax year that the contribution was made - if in 2015 then it goes on your 2015 tax return, if 2014 and not already reported on the 2014 tax return, then you must amend.
Your add on question does not give any of those facts.
**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.**
