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Recharacterization

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Dictionary Says

Definition of 'Recharacterization'

The treatment of a contribution as being made to another type of IRA instead of the IRA to which the contribution was initially made.
Investopedia Says

Investopedia explains 'Recharacterization'

For instance, an individual may make a participant contribution to a Traditional IRA but may later recharacterize the contribution to a Roth IRA.

Roth IRA conversions can be reversed by means of a recharacterization, however, this movement of assets must include earnings (or losses).

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