Client, age 40 made a $6000 contribution to an existing Roth IRA in 2019. Earnings attributable to the contribution are $1,000. Client divorced during the year and his single status puts him over the income limit to contribute directly to a Roth IRA. Client's financial advisor suggested withdrawing the excess contribution along with the attributable earnings and paying income tax on the earnings, then making a non- deductible contribution to a traditional IRA and doing a back door conversion.
The above sounded reasonable, but could the client do a recharacterization of $7,000 (contribution plus earnings) to a nondeductible traditional IRA and later do a conversion of that account to a Roth IRA? Client does not currently have any traditional IRA assets.