TAX RULES RELATING TO THIS FORM
Contributions that can be recharacterized:
The following IRA contributions can be recharacterized IF you meet
the requirements for making the contribution resulting from the
recharacterization:
1. A regular contribution to a Traditional IRA can be recharacterized
as a regular contribution to a Roth IRA.
2. A regular contribution to a Roth IRA can be recharacterized as a
regular contribution to a Traditional IRA.
Contributions that cannot be recharacterized:
1. A rollover or transfer between the same type of IRA.
2. A simplified employee pension (SEP) or SIMPLE IRA plan
contribution.
IRA-to-IRA rollovers and transfers are ignored. The
recharacterization rules ignore a rollover or transfer between two IRAs
that are the same type (for example, a rollover between two Traditional
IRAs or a transfer between two Roth IRAs). If you have moved the
assets from the IRA into which you made the contribution to another
IRA of the same type, then you should complete this form using the
information about the original contribution. But you still give the form to
the IRA trustee or custodian currently holding the assets.
Deadlines. There are two deadlines for recharacterizing a contribution:
1. The IRA trustee or custodian for both the distributing and the
receiving IRAs must receive this form on or before the date
that the assets are moved between the two IRAs. This can be
accomplished by one of the IRA trustees or custodians mailing
the form to the other, either with the transfer check or with a
request for a check.
2. The deadline for moving the assets between the two IRAs is the
due date (including extensions) for filing your federal income tax
return for the taxable year for which the contribution was made. For
a regular contribution, this is the deadline for the return for the year
for which the contribution was made.
Effect of recharacterizing a contribution. A recharacterized
contribution is treated as if it was made to the receiving IRA on the
same date and for the same year that the contribution was made to the
distributing IRA. You must complete your income tax return consistent
with this treatment of the contribution.
Use the chart below to determine income attributable.
COMPUTATION OF INCOME ATTRIBUTABLE
Date of Contribution Being Recharacterized ______________
(If there are several, use the date of the first contribution.)
Current value of the
IRA. The balance
before removing the
contribution. Include
all investments of the
IRA and earnings that
have been accrued
but not yet posted.
Distributions during
the Computation
Period.* Include all
removals prior to
the removal of this
contribution.
+ = - =
+ =
Value of IRA
immediately before
the contribution.
Include all
investments of the
IRA and ignore
unposted earnings.
Contributions during
the Computation
Period.* Include all
additions
except the
posting of
earnings.
÷ = X =
+ =
Contribution Amount
Remove this amount.
This is the income attributable to the contribution.
*The Computation Period begins immediately before the first contribution being recharacterized and ends immediately before the recharacterization.
