When can a Roth recharacterization of a converted traditional IRA?

Your contribution must be recharacterized on or before your tax-filing deadline for the year for which it was made. The IRS generally provides an extended time frame—until October 15—to complete your recharacterization.

Is an IRA conversion the same as a recharacterization?

When it comes to IRAs, the terms “conversion” and “recharacterization” refer to opposite actions — respectively, converting a traditional IRA to a Roth IRA and vice versa. Each has its own set of rules and tax implications.

How to recharacterize an IRA contribution or conversion?

How to Recharacterize To recharacterize a conversion or contribution, you must move the assets from the IRA that first received the contribution (or conversion) to the IRA in which you want the assets to be maintained. Some financial institutions will process the recharacterization by simply changing the IRA from one type to another.

Can a recharacterization of a Roth IRA be reversed?

If so, you may be able to reverse or rescind your conversion if circumstances warrant it (and if you meet all of the necessary requirements). Such a rescission is known as a Roth IRA recharacterization. In addition to reversing Roth IRA conversions, you may be able to “undo” or recharacterize regular (i.e., non-rollover) IRA contributions.

How does partial recharacterization of an IRA work?

The calculations are based on ALL assets in your IRA plan, not just the fund contributed to. For partial recharacterization, the client may choose the date (s) of the original contribution that they would like to be used in the calculation for earnings/loss.

Can a SIMPLE IRA be recharacterized as a SEP IRA?

Tip: You can’t recharacterize employer contributions (including your elective deferrals) under a SEP-IRA or SIMPLE IRA plan as contributions to another IRA. However, if you converted SEP-IRA or SIMPLE IRA contributions to a Roth IRA, you can recharacterize those contributions back to a SEP-IRA or SIMPLE IRA.