So glad to find this site…was a long term lurker and occasional poster at FWF since maybe 2003 or so.
Anyway, when doing my 2016 taxes this spring, I realized that the wife and I had reached the Roth IRA contribution limit range with our MAGI.
I had already made the $5,500 contribution for each of us for 2016, so I requested a recharacterization from our broker for each of the two Roths into two new taxable IRA accounts. Not sure how I missed it all this time, but when prepping for year end taxes this year, I’ve realized that the wife’s recharacterization didn’t go through. Apparently, there was not enough liquid cash to account for gains on the $5,500 since the contribution was made, so it got cancelled. Brokerage says they sent an email about it, but it either went to spam or got inadvertently deleted. Either way, wife has too much in her Roth for 2016.
I contacted the broker to reconcile and they said I can’t fix this problem after October 15th and to call my accountant…which I don’t have.
So…what is my next move to get this straightened out? I’m sure there’s some sort of penalty involved, but not sure where to start, since I can’t start with the brokerage.