I have a similar situation. I made both contribution for years 2024 and 2025, and now I realized for year 2024 my income is above limit for contribution. I filed an extension. I wish to recharacterize the contribution in 2024, and NOT 2025.
January 16, 2024: I contributed $7000 to Roth IRA fidelity
January 15, 2024: Account value in fidelity = $15000
June 2024: transferred everything to Robinhood Roth IRA that is brand new, i closed the fidelity account
Jan 2025: made a second contribution of $7,000 meant for year 2025
today: robinhood Roth IRA value = $ 26000
I am recharacterizing only the $7000 from 2024
How should I calculate the NIA?
Based on the IRS guideline worksheet1-3, "Enter the fair market value of the IRA immediately prior to the time the contribution being recharacterized was made, including the amount of such contribution and any other contributions, transfers, or recharacterizations made while the contribution was in the account".
Robinhood does not calculate the earn/loss, unfortunately. Would really appreciate your help!
How do I calculate the NIA?
If NIA=C×[(A-B)/B]
Where:
C = amount of contribution to be recharacterized (2024)
A = the value of the entire Roth IRA at the time of recharacterization
B = value of the Roth IRA at the time the 2024 contribution was made plus that contribution
Do I need to adjust for A & B to exclude the 2025 contribution and any earnings/losses on it?
