IRA Conversion vs. Recharacterization

by | Aug 23, 2022 | Traditional IRA | 10 comments

IRA Conversion vs. Recharacterization




Both of these mechanisms facilitate moving money between a traditional and Roth accounts, but have different implications and different times you can use them….(read more)


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10 Comments

  1. Amir Taha

    easily the best video on this. super helpful. thankssss

  2. Klaus Gersdorf

    IRS does Not allow Recharacterization of Converted Roth IRA/401k Funds since 2018?

  3. Vinay Jain

    Excellent explanation. I was looking for this explanation being first time IRA saver and made some mistakes. Saw many videos but none covered the way you explained

  4. Irene Zhenyu Wu

    Dustin, great video. However, caution that you now may not recharacterize a Roth conversion any more due to Tax Cuts and Job Acts 2017. You may still recharacterize a Roth contribution, or maybe a Roth conversion you made before Dec 31 2017. See this statement "No recharacterizations of conversions made in 2018 or later." from https://www.irs.gov/instructions/i8606#idm140491961130160. Hope it helps.

  5. Joseph Shield

    Very helpful, although I was surprised by the sudden end of the video

  6. Daniuska C

    Thank you, Dustin! This is a very useful video.

  7. trayodashi

    You covered this really well and with lot of fluency about the financial knowledge. Are you in financial consulting business? If you are, I like to get your help.

  8. Robert Yu

    I can’t believe you have so few subscribers. You clearly defined what I was so confused about recently on my traditional and Roth IRS. Thanks so much

  9. Yi Zheng

    Thank you so much for explaining that! I am the example that wasn't aware of my tax situation until filing the tax and would wish I contributed to Roth. So I would do recharacterization. One further question, I have already filed my tax. I have the Form 8606 Nondeductible IRA included in my tax filing for 2019. Should I amend my tax filing after recharacterization? Thanks a million!

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