Roth Recharacterization 2008
If someone did a $100k IRA conversion to a Roth in early 2008, and then the market tanked and they recently recharacterized their earlier conversion back to the traditional IRA, can they do another conversion to a Roth for other monies in 2008?
Or are they precluded form doing so because of the recharacterization?
Permalink Submitted by Alan Spross on Mon, 2008-11-17 23:39
If there have been OTHER monies in the TIRA, they can do another conversion any time they wish. The reconversion limitations address a second conversion of the “same amount”, ie the conversion of an entire IRA balance, a recharacterization of that conversion and a second conversion of the same IRA.
In your post, if there were funds in the TIRA that were not converted in the first place, ie the TIRA continued to have a balance while the first conversion was in the Roth, another conversion of the amount that never left the IRA should be OK. I would also be sure that the dollar amount of the second conversion was different than the first conversion.