Recharacterizing Your IRA Contribution or Roth Conversion

Taxpayers who recharacterize Roth conversions and individual retirement accounts (IRA) contributions are faced with the daunting task of calculating the earnings (or losses) on the amount if such services are not provided by their IRA custodians. Below, we’ll explain recharacterizations and help you understand the mechanics of calculating earnings or losses on the amounts you want to recharacterize. If you file the tax return on time (generally by April 15), you receive an automatic six-month extension, which means your deadline to recharacterize a contribution is October 15 of that same year.

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