Recharacterization of Rollover Contributions
Hello, I know that as of 01/01/2018 we can no longer recharacterize Roth conversions but is this also true for a qualified rollover contribution that was made to a traditional IRA in 2018 and they now what to recharacterize it to a Roth IRA?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2019-01-10 19:34
Yes, in fact a rollover contribution to a traditional IRA could never have been recharacterized even before 2018. Regular 2018 contributions can be recharacterized, but not rollovers. I assume you are referring to a direct rollover from a qualified plan to an IRA that the participant now wishes had been done to a Roth IRA, but if there was an error made by either the distributing plan or the IRA custodian that resulted in the deposit going into the incorrect account, perhaps pressure can be put on these custodians to correct the error.