If I need to withdraw or recharacterize contributions to a regular or roth IRA, should I use the contribution amount, or the contribution amount gains/losses?

[holzhauzer]

I recharacterized a traditional IRA contribution to a Roth in my 2019 tax year and my brokerage just moved shares, which included a small capital gain and pushed the recharacterization just over $6K. As O go to amend my 2019 return, TT now says I overcontributed to the Roth.  Is that correct? We need to do a similar recharacterization for my wife for 2020, and I don't want to repeat any penalties I am incurring here.

[macuser_22]

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@holzhauzer wrote:
I recharacterized a traditional IRA contribution to a Roth in my 2019 tax year and my brokerage just moved shares, which included a small capital gain and pushed the recharacterization just over $6K. As O go to amend my 2019 return, TT now says I overcontributed to the Roth.  Is that correct? We need to do a similar recharacterization for my wife for 2020, and I don't want to repeat any penalties I am incurring here.

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"Just"  moved" - in 2021?   A 2019 contribution had to be characterized before July 15, 2020 (or Oct. 15 2020 if you filed a timely extension)..    After that it is not eligible to be recharacterized. 

In 2021 it can only be removed with a normal distribution.    Anything put into your Roth in 2021 is a new 2021contribution  subject to the contribution limits.

[macuser_22]

If it was actually recharactorized in 2020 then you should have received a 2020 1099-R reporting it.