Roth IRA reconversion timeframe
A client had $100,000 in a traditional IRA1 and converted $50,000 to a Roth IRA in 2015. The $50,000 that was converted is now worth $30,000 and the client recharacterizes to a new traditional IRA2. Can the client convert $30,000 from traditional IRA1 without having to wait the 30 days?
Permalink Submitted by Alan - IRA critic on Tue, 2016-01-26 19:22
Yes. Client can trace the recharacterized conversion to the new IRA account, so as long as there were no other transfers between these accounts, the second conversion could not have come from the recharacterized funds. No waiting period to do second conversion.