How do I reclaim the taxes I paid on a Roth IRA after I recharacterized it as a traditional IRA?

by Paul K. Rudoy, CPA, PFS | Apr 26, 2018

In 2016, I rolled over a small amount of money from a traditional 401(k) into a Roth IRA. I paid the taxes in 2016 for that Roth as well. In early 2017, after talking to an investment adviser, I decided to have that Roth recharacterized back to a traditional IRA. My question is, how can I reclaim the taxes I paid in 2016 on that Roth now that it is back to a traditional pretax IRA? Do I amend my 2016 return?

If the recharacterization was done by the due date of your tax return, including extensions, then the original Roth conversion is not taxable. You should file an amended return indicating the Roth rollover as nontaxable.  

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Answered by: Paul K. Rudoy, CPA, PFS, is managing partner of H2R CPA in Pittsburgh.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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