AGI too high for Roth IRA, recharacterized to Traditional ARI and back to Roth
In 2011 my wife and I contributed the max ($10,000) a Roth IRA. We found out our AGI was too high and our investment adviser had us recharacterze it to a Traditional IRA and then put it back into the Roth and we did not have to pay taxes on the money. At that time we had already made our contribution for 2012 and assuming our AGI would be too high again did the same thing. TT is now treating the entire $20,000 we recharacterized in 2012 as Gross Distrubution and taxing us as such when we never took any of the money. I entered everything manually into TT and then had everything downloaded directly from our broker and each way has the thing. Am I doing something wrong, or have I been given bad investment advice?