Roth Recharaterization
A Roth Conversion was completed on January 6th, 2011.
This extends the timeline to recharaterize until October of 2012 I believe.
The question relates to a recharacterization in 2011. The current account value is less so I believe that a recharacterization is still appropriate.
Can someone offer some guidlines on this.
The error relates to a belief that the original conversion was completed in late 2010 and we just found out that the actuall date is in 2011
Permalink Submitted by Alan Spross on Thu, 2011-10-13 18:46
First, you need to determine which year the distribution from the TIRA took place. If someone took a distribution in November of December of 2010, they have 60 days to roll it to a Roth IRA, so it is possible that a conversion actually completed in 2011 would be a 2010 conversion. However, most conversions are done by direct transfer rather than by indirect rollover. The easiest way to tell is whether a 1099R was issued for 2010 or not. If so, this is not a 2011 conversion and there would only be 2 days left to recharacterize it.
If the distribution was in 2011 and there was no 1099R issued for 2010, then there is an entire year remaining to recharacterize it.