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

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.  

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

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

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