There seems to be an error in the roth recharacterization calculation. We are over 50 and it shows the full $7,000 as an excess contribution to income restrictions. However, all contributions were done to nondeductible IRAs.
Here's how I entered it in TurboTax:
-Checked Traditional IRA for contributions
-Answered No to repayment
-Entered 7000 for 2019 traditional contribution, 0 for amount between 1/1 and 4/15, 2020
-Entered 7000 for "switched" amount
-Entered explanation using template
-Answered No to prior excess
-Answered Yes to tracking nondeductible contributions
-Entered 0 for basis as of 12/31/2018 (we make contributions in January and immediately recharacterize for current year)
It then shows a penalty for excess contributions due to the income restriction.
Is this a known problem?
