Recharacterization of IRA Contribution

[Bliss]

I opened a traditional IRA for my husband in January of this year and made one contribution for the full amount of $5,500 into one Vanguard fund. Other than automatic dividend reinvestment, nothing has been done with this account since then. The current balance is about $6,400. 

Nine months later our tax situation has changed and the IRA contribution will not benefit us by reducing taxes. What I would like to do is switch this to a Roth IRA and I understand that I have to fill out paper work to 'recharacterize' this from Traditional to Roth.

I understand that two tax forms will be generated: 1099R ($5,500 recharacterization + $900 gain) and 5498 (which won't go to the IRS). 

Will moving the money to a Roth generate a tax event for us? Or will it be simply be swapping one type of IRA for another, since it was all done in the same calendar year?

Thank you!
 

[MDM]

Will moving the money to a Roth generate a tax event for us?  No.
Or will it be simply be swapping one type of IRA for another, since it was all done in the same calendar year?  Yes.

See IRA recharacterization - Bogleheads: "The recharacterization allows you to treat...the contribution as if it was made to the correct type of IRA in the first place."

[Bliss]

Exactly the information I was looking for. Thank you!

[terran]

What we were told, and what we did was attach a statement to our taxes explaining what we did.