Changing this year's roth IRA contributions to Traditional IRA contributions.

[Highbeam]

I auto-contribute to my and my wife's vanguard roth ira account each month to max them out each year. That's fine. I now realize that I am better off taking the income tax deduction and making these contributions to a traditional IRA. Is it possible to move this year's contributions out of my roth and into a traditional IRA account? Or must I just make the switch at the beginning of next year for future contributions. 

[KCM5]

You can re-characterize the contributions. Just call Vanguard. Basically, you create a traditional IRA account if you don't already have one and then they re-characterize the contributions for you. It's really easy. I did it last year no issues.

[GGNoob]

I did it this year. Spent maybe 5 minutes on the phone. Very easy!

[Highbeam]

Thank you folks for the quick answer. I'll just make the call and do it.

[Gone Fishing]

If it makes sense, you can even recharacterize your 2014 contributions up until October 15th.  You would need to file an amended return to get back the difference.

[forummm]

When you recharacterize do you just take out the contributions, or do you need to include earnings too?

[johnny847]

When you recharacterize do you just take out the contributions, or do you need to include earnings too?

From IRS Publication 590

To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the tax year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. If you recharacterize your contribution, you must do all three of the following.

    Include in the transfer any net income allocable to the contribution. If there was a loss, the net income you must transfer may be a negative amount.

    Report the recharacterization on your tax return for the year during which the contribution was made.

    Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA.

[Emphasis mine]


Vanguard will calculate all of this for you. And I'm guessing other brokerages will do the same.