For 2019 I had an excess contribution to my individual ROTH IRA due to underestimated income at the time of the contribution.
I did an expert review and was advised to remove the excess contribution to avoid penalties.
I then called Fidelity and they mentioned there may be another option that may work better for me:
Re-characterize ROTH contribution to Traditional IRA and then re-characterize back to ROTH with no penalties and only having to pay taxes on earnings.
Is that a valid option and I when I provide the explanation statement can I just say "underestimated income" and "wanted the contribution in my ROTH account"? Or are only certain explanations valid and am I likely to get in trouble based on mine?
Thanks!
