Recharacterization

What does it Mean? 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... 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).

Terms Related Links

In-Service Withdrawal
IRA
IRA Adoption Agreement and Plan Document
IRA Conversion
Non-Qualified Distribution
Ordering Rules
Qualified Distribution
Reconversion
Required Minimum Distribution
Roth IRA
Spousal IRA
Triggering Event

Terms Related Links
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