Roth IRA rechariterization from 403b
I have a client that had seperated from service and we converted her 403-b to a roth ira in july 2009 and then started making monthly contributions to the roth ira. She just sent me a letter from her accountant. Her and her husbands income ended up being over $100,000 for 2009 and her accountant told her to recharacterize her roth. I have not had this happen before. How do i do this for her?
Thanks,
Don
Permalink Submitted by Alan Spross on Wed, 2010-02-24 19:37
It must be recharacterized into a TIRA account, as it cannot go back into the 403b plan. If she does not have a TIRA account, she will have to open one up to to receive the recharacterization. Using the Roth custodian for the TIRA would simplify the process. She should be able to get this done within a week or so in most cases, and then provide the numbers to the accountant for the explanatory statement and her 2009 return can be continued.
If she wants to reconvert, she must wait 31 days after the recharacterization date.