A recharactorization is treating a new contribution to a Roth as actually a contribution to a Traditional IRA instead. Did you make a 2019 new contribution to a Roth IRA? The time limit to do a 2019 recharacterization expires tomorrow (July 15) unless an extension is filed before July 15. It is probably already too late for a financial institution to preform and post by July 15 (most take 2-3 business days).
The financial institution must also calculate any earnings on the contribution and transfer that also. Gain (or loss) is calculated on the entire Roth and pro-rated for the value of the amount transferred.
For example, if the 2019 Roth contribution was $5,000 then exactally $5,000 must be transferred plus any gain or minus any loss.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
