Permalink Submitted by Alan - IRA critic on Sat, 2015-03-14 16:55
Whether you are recharacterizing a regular Roth contribution or a conversion, if the Roth account already had a balance before the contribution, the calculation of gain or loss on the contribution is based on the gain or loss % of the entire account while the contribution was in the account. For example if you converted stocks of the same value as the Roth already had sitting in a mm fund, and the stocks gained 20%, the average gain for the entire account is 10%. If you recharacterize, the amount that is transferred to the TIRA is then 10% more than what you converted. You can decide which assets you want transferred and can use either stocks or the mm fund as long as the total value of these assets is 10% more than the value you converted.
Permalink Submitted by Lakshmi Goriparthi on Sat, 2015-03-14 06:17
If I have stocks in my roth which is mixed with other roth IRA. Is it a percentage any other way
Permalink Submitted by Alan - IRA critic on Sat, 2015-03-14 16:55
Whether you are recharacterizing a regular Roth contribution or a conversion, if the Roth account already had a balance before the contribution, the calculation of gain or loss on the contribution is based on the gain or loss % of the entire account while the contribution was in the account. For example if you converted stocks of the same value as the Roth already had sitting in a mm fund, and the stocks gained 20%, the average gain for the entire account is 10%. If you recharacterize, the amount that is transferred to the TIRA is then 10% more than what you converted. You can decide which assets you want transferred and can use either stocks or the mm fund as long as the total value of these assets is 10% more than the value you converted.