I made an ineligible contribution to my self-directed Roth IRA (2019) as I am not earning income. My CPA suggested I do a recharacterization of the funds to remove them from the account. The non-fiduciary money manager of my Roth said I cannot do a recharacterization due to a new IRS guideline as of 2017. I noticed in your FAQs that you mention this as an option. I am not sure what I can and cannot do.
I was originally told that I should take money from a traditional IRA that is held with a different fiduciary custodian to put into the Roth. I was told by ETC (where my Roth is) I needed to open a traditional with them and do a conversion from the new traditional into the Roth. I opened a new traditional account with them and rolled money from the first traditional into the new one. Then I took the money from the traditional into the Roth with the intention of recharacterizing the funds back into a traditional. After filing the paperwork, I am now being told I cannot recharacterize the funds due to the IRS change in 2017.
Please advise. Thank you!