Tax on Roth Conversion/Recharacterization
Client converted to a Roth in 2016, now wants to recharacterize to the IRA.
Has not filed or paid the tax yet for the 2016 conversion.
Can he have his accountant make this correction and not pay the tax for 2016?
We are filing the appropriate paperwork with trustee for the recharacterization
Permalink Submitted by Alan - IRA critic on Tue, 2017-04-11 23:15
Yes, the conversion can be recharacterized and not reported on the 2016 return. Client must complete the recharacterization by 4/18 unless the 2016 return is either filed or an extension filed by 4/18. The return should include an explanatory statement about the conversion and recharacterization including what the actual amount was that transferred back to the TIRA.