recharacterization: the original amount to the first IRA you report as contribution to the second IRA, earnings move but that is ignored.
You must use a trustee-to-trustee transfer before the due date April 15,2025 ( or Oct 15, 2025 if 1040 was timely filed or extended).
You will instruct trustee to calculate the allocable earnings.
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.
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Upon reporting a Trad IRA contribution (non-deductible) of the original amount on your tax return, you can then also report a Roth conversion of the contributed amount for net tax of zero, unless your IRA previously had value exceeding basis.
In that case, it can't be done tax free.
to report a non-deductible contribution, Form 8606 must be attached.
@TomDx
In your case the extra earnings also converted will be taxable.
If you follow the IRS process above, you can toss the 1099-R showing recharacterization into the circular file.
If you enter it you will have to explain to TurboTax what you did.
