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Instructions for Using the IRA Recharacterization Calculator
To use the IRA Recharacterization Calculator, enter the amount you wish to recharacterize and select the original and new IRA types. Click ‘Calculate’ to view the result.
Understanding the IRA Recharacterization Calculator
What is IRA Recharacterization?
IRA recharacterization allows you to change the nature of your IRA contribution for a tax year. For instance, you can convert a Roth IRA contribution to a traditional IRA, or vice versa, within certain limits.
Benefits of Recharacterization
Recharacterization can help you take advantage of tax benefits that you might have missed initially. It offers a second chance to correct your initial IRA contribution decision.
FAQ
Can I recharacterize any amount?
No, you must adhere to the contribution limits and other regulations set by the IRS.
How long do I have to recharacterize an IRA?
You generally have until the tax filing deadline for the year of the original contribution, including extensions.