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Level 1
posted Mar 23, 2022 7:12:29 PM

Recharacterization of rollover from ESOP to Roth IRA?

In 2021 I did a direct rollover from an Employee Stock Option Plan into a Roth IRA. The 1099-R I received lists the same amount for my Gross Distribution and Taxable Amount. While doing my taxes, it now shows that I owe federal and state taxes, presumably from the rollover into the Roth IRA.

 

Is there a way that I can rollover that money, which apparently has not already been taxed, from my Roth IRA into a new or existing Traditional IRA in order to avoid the current taxes I'm facing? (recharacterization or otherwise?)

0 2 1254
1 Best answer
Level 15
Mar 24, 2022 5:44:06 AM

No.  The Tax Cuts and Jobs Act of 2017 eliminated the option to recharacterize this transaction.  You are stuck with the tax consequences of this taxable rollover.

2 Replies
Level 15
Mar 24, 2022 5:44:06 AM

No.  The Tax Cuts and Jobs Act of 2017 eliminated the option to recharacterize this transaction.  You are stuck with the tax consequences of this taxable rollover.

Level 1
Mar 24, 2022 5:22:35 PM

😩 ok, thank you for your time.