Recharacterize. File or Extension?

Does filing your taxes on 4/18/2011 cause you to lose your ability to recharacterize (2010 Roth conversions) up until 10/17/2011? Or must you file an extension to retain the ability to recharacterize that late in the year?



EITHER a timely filed return OR a timely filed extension enables use of the extended due date. If neither is done on time, then there is no due date extension.



IRS made it clear back in 1999 that you still have until the extended due date 10/17 this year i believe to recharacterize your Roth conversion or contribution. The only wrinkle if you file by April 18 is that you’ll have to amend the 2010 return. The amended return follows the normal 3 year statute of limitations only the recharacterization needs to occur by the October date.



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