I made a mistake of transferring money from a rollover IRA to Roth IRA, Can I undo the mistake and avoid the taxes
031295
3 Replies
Critter
Level 15
Nov 17, 2019 3:01:39 PM
If you moved money from an IRA to a ROTH then that is called a conversion ... you have until the filing deadline to undo the conversion (in full or any part) ... that is called a recharacterization which is no longer allowed since the change.
macuser_22
Level 15
Nov 17, 2019 3:40:55 PM
Sorry but the Tax Cuts and Jobs Act (TCJA) prohibits recharacterizing Roth IRA conversions from 2018-2025. Once converted - it cannot be undone.