Rollover to wrong type of IRA
Customer rolled over their SEP IRA as a Roth from bank A to bank B. Don’t know how or why 🙁 She got hit with a 7k tax bill. She filed her taxes in a timely manner. Can she do a recharacterisation and what is the deadline if she is able? Thanks
Permalink Submitted by Alan Spross on Fri, 2009-04-24 20:37
Yes, she can still recharacterize the conversion up until the extended due date of 10/15/09 for a 2008 conversion. She will have to amend the return if she reported the conversion. She can explain the conversion and recharacterization dates and amounts on the 1040X.