Roth Recharaterization Fix
In February’s IRA Advisor Newsletter, one of the topics is the “Roth Recharaterization Fix” where it goes into brief detail about how you can recharacterize a Roth conversion. What was not clear to me is whether or not the recharacterization option also applies to a conversion from a qualified plan?
If it does, would the individual simple recharacterize back to a traditional IRA instead of the plan?
Permalink Submitted by Alan Spross on Thu, 2010-01-21 18:59
Yes, a direct conversion from a QRP must be recharacterized to a TIRA account. It cannot go back into the plan.
There may be more than one issue that can be “fixed” by recharacterization. What was this one designed to fix?