Roth Recharacterization
My client has had a Roth IRA for many years. He did a Roth conversion in 2012. We established a 2nd Roth account in case a recharacterization was done in 2013. No recharacterization was done.
We are doing another Roth conversion in 2013. Rather than establishing another Roth IRA for another possible recharacterization in 2014, can I just transfer the assets from the smaller Roth to the larger Roth then do the 2013 Roth conversion in the now empty Roth? Would they only consider the 2013 Roth conversion if that was recharaterized in 2014?
Many thanks as always … Mary Dean
Permalink Submitted by Alan - IRA critic on Thu, 2013-10-31 04:44
That would work. Since the 2nd account will have -0- balance when the 2013 conversion is transferred into it, any subsequent recharacterization earnings calculation will only involve the converted dollars, just as if the conversion was done to a newly established Roth.