Overlapping Conversions/Recharacterizations 2012/2013
Am I allowed to initiate a new Roth Conversion for tax year 2013 if I still have not finalized my 2012 Roth Conversion by Recharacterizing a portion of the amount originally converted back to my Traditional IRA?
The accounts for the 2012 transaction(s) are with a mutual fund family. The investment is in a mutual fund. I will file an extension for 2012’s Federal Tax return by Monday.
I would like to start another conversion (this one for tax year 2013) involving 2 different IRA accounts (held at a brokerage) involving a completely different investment (individual common stock).
In brief, do I need to finalize the first (2012) before I can initiate the second (2013)?
Thanks for your help.
Permalink Submitted by Alan - IRA critic on Sat, 2013-04-13 00:46
It is OK to do your 2013 conversion prior to the 2012 recharacterization. In the unlikely event the IRS suspects that you reconverted without the required waiting period, all you should need to do is provide copies of statements showing that you did your 2013 conversion first.