My client has two just assets in one of his Roth Accounts.
Asset A was a TIRA asset that was converted to a Roth in 2015.
It was converted at $67,500 and is now worth $31,640.36.
We would like to recharacetize this Asset, because it could save taxes.
However there is another asset in the account, Asset B, which was always a Roth Asset.
The source funds for Asset B goes back more than 5 years.Asset B is valued at $50,000 and was invested April of 2014 at that same amount, $50,000.
My question is this: Since Asset B is past its recharacterization time limit of October 15th of 2015,then shouldn’t it’s value be disqualified from the recharacterization formula?
If so, then there is no need to transfer Asset B out of the Roth after-all.
Ultimately, I will consult with Pershing to see how they will handle it.
What do you think now?