What are the tax consequences of re-characterizing a conversion?
There are no tax or penalty implications associated with recharacterization itself. For tax purposes, when you recharacterize a conversion contribution the amount recharacterized is treated as if it had never been converted. However, if your entire Roth IRA balance is not being moved to the traditional IRA as part of the recharacterization, consult your tax advisor prior to recharacterizing for possible ramifications of this action.
