What is a Roth Recharacterization?

The IRS gives a mulligan to anyone who converts money to a Roth IRA up until the extended due date of the tax return for the year following the conversion. For non-golfers, that means you get a do-over if you convert and then wish you hadn’t. So if you convert $100,000 from your traditional IRA to a Roth on 1/2/17, you have until 10/15/18, or 662 days, to change your mind. Recharacterizing reverses the transaction going back to the date of conversion.

Roth recharacterization rules

When to recharacterize a Roth IRA

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