Taxes on rechar. of RIRA to TIRA
I rolled two TIRAs this year to RIRAs. Then I decided to take one RIRA and rechar. it back to a TIRA with the same fund family. There is a little difference in amounts but may be only 50 dollars. My question is: will the fund company see that I changed back to the TIRA and not issue me a 1099 for the rollover of the TIRA?
Permalink Submitted by Alan - IRA critic on Mon, 2017-05-22 20:24
If you converted 3000 and later recharacterized the full amount of that conversion which had risen in value to 3050, you will receive a 1099R for the 3000 conversion distribution and another 1099R reporting the recharacterized conversion showing 3050 transferring back to the TIRA. You will have to report both 1099R forms on your return, but the end result is that you will not be taxed on the conversion you recharacterized or the gain of 50 that was transferred back to the TIRA.