I learned this year that I was ineligible to make Roth IRA contributions in 2018 and 2019. I learned that I can recharacterize my 2019 contributions as Traditional IRA contributions. I was told that I should not report this on my tax form but, instead, attach a statement to my tax form with this recharacterization.
My next step is to withdraw my excess contribution made in 2018 since I can’t recharacterize it. I was told that I can keep the earnings in the Roth IRA account. However, I don’t know what the reporting rules are. I know that I have to pay a 6% fee on the contribution because it was in the account for a year. Should I expect to receive something from the financial institution and do I report it this year? Do I have to amend last year’s tax return?
