Recharacterize Converted Traditional IRA

[bzorc]

Taxpayer converts a traditional IRA to a Roth during 2010 and elects to pay the taxes in 2011 and 2012. Taxpayer now wants to recharacterize the conversion back to a traditonal IRA. Is this allowable? Have not seen this one yet this year.

Thanks for any replies!

[ETA Consulting LLC]

As a rule, the taxpayer would've had until the extended 2010 tax filing deadline to recharacterize. I don't "think" that date was extended with the spreadout of taxes during 2011 & 2012. I know the rule was written to make paying the taxes in 2011 & 2012 as the default while the participant was allowed to pay all taxes in 2010. I just don't recall the deadline for recharacterization being impacted.

Good Luck!

[bzorc]

As a rule, the taxpayer would've had until the extended 2010 tax filing deadline to recharacterize. I don't "think" that date was extended with the spreadout of taxes during 2011 & 2012. I know the rule was written to make paying the taxes in 2011 & 2012 as the default while the participant was allowed to pay all taxes in 2010. I just don't recall the deadline for recharacterization being impacted.

Good Luck!

Thanks for the response, ERISA! The deadline wasn't extended, after further research. Had to be done by October 15, 2011 at the latest, so this taxpayer is out of luck.