Form 8606: I invested Roth IRA contribution, then realized I needed to backdoor it. So I had earnings that made total greater than 7k. Is this excess contribution?

[denjonhochstein]

I contributed 7k to roth ira 1/2025, then in May got married and realized given our situation, we needed to file separately, meaning I needed to backdoor this IRA contribution through a trad IRA. This meant my earnings came with it so my total recharacterization back into Roth IRA was 7800. Turbo tax says that is excess contributions but my financial advisor said it isn't. Help?

[dmertz · Accepted solution]

The amount of contribution recharacterized was $7,000, not $7,800.  $7,800 was the gain-adjusted amount transferred to the traditional IRA, not the amount recharacterized.  The attributable gains transferred simply became investment gains within the traditional IRA.