What does it mean to re-characterize a Roth IRA conversion?
Under federal law, taxpayers have the option of “undoing” a Roth IRA conversion transaction by doing a recharacterization. When you recharacterize a Roth IRA conversion transaction, you’re essentially electing to put things back to the way they were prior to the conversion. 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.
