Author Topic: Advice with Re-characterization of IRA  (Read 1211 times)


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Advice with Re-characterization of IRA
« on: May 17, 2016, 08:11:06 PM »
Hello everyone,

-I just turned 25 and am very new to investing and for the Tax year 2015 I contributed $5,500 to a Vanguard Roth IRA.
-I was reading up on how if I am in a higher tax bracket now and probably will be in a lower tax bracket in retirement, then it will be better to have a Traditional IRA and a taxable account.
-Because of this, I re-characterized my Roth IRA to a Traditional IRA, but after doing so I found out that since I am in a employer-sponsored retirement plan and my income MAGI is around $67,500 I am not able to deduct the full Traditional IRA contribution correct?

-So my question now is, should I re-characterize my Traditional IRA back to my Original Roth IRA?
-If I re-characterize an IRA twice in a year does that wash with each other but I will have to amend my 2015 taxes?
-Will there be any tax complications or fees in doing so?

Thank you very much for the help, much appreciated.


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