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Level 1
posted Nov 17, 2019 2:40:16 PM

I made a mistake of transferring money from a rollover IRA to Roth IRA, Can I undo the mistake and avoid the taxes

0 3 1295
3 Replies
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. 

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.

Level 15
Nov 17, 2019 3:45:01 PM