Recharacterization and earnings calculation

[Guest cjsanders]

Question on Roth recharacterization calculations for earnings: Who is required to calculate earnings on my initial converted amount? Is the trustee, my CPA, or am I solely responsible for this?

Thanks,

Chris

[BPickerCPA]

Ultimately it's your responsibility. That does not mean that the custodian won't do it, or that you can't ask your CPA for assistance. I strongly suggest you get the assistance of a pro with extensive knowledge in this area, to make sure that it is done correctly.

[John G]

Do not assume that any third party calculation is correct. I have had experience with a brokerage that inserted the year end price for a transaction done in October.

Also be aware that there is often a lag between a request and when the custodian actually completes the transaction.

And for anyone contemplating a transaction this year, get busy because the clock is ticking. Some custodians may not act on requests at the end of December until next year. I am not sure if that is legal, but a few custodians set a cutoff date in advance of mid to late December.