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Frequently Asked Questions

What is an IRA recharacterization?

A conversion recharacterization is the reversal of an IRA conversion, such as from a Roth IRA back into a Traditional IRA. 

A contribution recharacterization allows you to change the contributions original designation and treat a regular contribution made to a Traditional IRA or a Roth IRA as having been made to the other type.

FAQs

Effective January 1, 2018, pursuant to the Tax Cuts and Jobs Act (Pub. L. No. 115-97), a conversion from a Traditional IRA, SEP, or SIMPLE to a Roth IRA cannot be recharacterized. The law also prohibits recharacterizing amounts rolled over to a Roth IRA from other retirement plans, such as 401(k) or 403(b) plans.

A Roth IRA conversion made in 2017 may be recharacterized as a contribution to a traditional IRA if the recharacterization was made by October 15, 2018. A Roth IRA conversion made on or after January 1, 2018, cannot be recharacterized. For details, see “Recharacterizations” in IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs).

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