My wife, age 56, made a 2019 contribution of $7,000 to her Roth IRA on 1/2/2019. On 2/22/2019 she re-characterized the $7,000 contribution to her traditional IRA (trustee to trustee). Her earnings of $523 were included in the total ($7,523) contribution to the traditional IRA.
Questions:
1. Does the $7,000 re-characterization qualify as a deductible contribution to her traditional IRA?
2. As the total contribution was $7,523, is $523 considered an excess contribution or is it acceptable to consider it a rollover to the traditional IRA?
3. Can the extra $523 be considered a non-deductible contribution thereby avoiding a penalty for an excess contribution?
