Rech in a down market
If I have an IRA at custodian #1 with a balance of $100,000 of which I did a 2015 roth conversion of $35,000. Since the market is down, I would like to rech/unwind the 2015 roth conversion.
I also have an IRA at custodian #2 with a balance of $125,000. Can I tap this IRA and do an immediate 2016 conversion since these assets are held at a separate custodian?
Permalink Submitted by Alan - IRA critic on Tue, 2016-01-26 18:56
Yes. Recharacterize the earlier conversion either to a new TIRA account or back to the account the conversion came from. There is no waiting period to convert from the custodian #2 IRA because you are clearly converting different assets than the ones you recharacterized. In addition you plan to convert before the recharcacterization is processed.