I opened a Roth IRA last month and contributed $1000 to it for 2020. Then I decided it would be better if that contribution was made into a Traditional IRA to be deductible for 2020. I arranged with my bank to recharacterize the entire amount in the Roth over into the traditional but the value had gone down to $950. In TT, I get to the screen that ask "Tell us How much you Transferred". Do I tell it the original amount, $1000 or the reduced amount $950? This was a brand new Roth acct so there was nothing in it before, and there will be nothing in it (for now) after the recharacterization.
Thanks!
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Yes, you would put $1000 for the recharacterized amount even though it is not worth that much.
Anyone have any experience with this issue? I put $1000 for the recharacterized amount, since I'm moving the whole contribution from the Roth to the traditional. Even though the market value was down, it seems like the logical answer, right?
Yes, you would put $1000 for the recharacterized amount even though it is not worth that much.
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