Roth IRA recharacterization after 60 Day Rollover

Submitted by Paul Markovsky on Thu, 2015-04-02 01:18

I converted $40K from a Traditional IRA into ROTH in October, 2014.
Then I took a $15K distribution from ROTH in November and rolled same $15K back in December (within 60 day).

Now I want to recharacterize the ROTH back to Traditional since the value of the stock dropped to $30K.

Is this $15K distribution/rollover somehow affecting the recharacterisation or should I proceed with the recharacterision as if the rollover never happened?

Thanks.



Submitted by Alan - IRA critic on Thu, 2015-04-02 01:57

You can proceed with it. The IRA custodian will use the mandated formula for the net earnings on the conversion to be transferred back to the TIRA. The rollover will basically be a non event.



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