Definition
A conversion of an amount that was previously converted and subsequently recharacterized.
An IRA owner who converts an amount to a Roth IRA during any taxable year and recharacterizes the amount, may not reconvert the amount before the later of the following :
- January 1 following the taxable year in which the amount was converted to a Roth IRA or
- The end of the 30-day period beginning on the day on which the amount was recharacterized
If the amount is reconverted before this period it a failed conversion
Referring Cite
Treas. Reg. §1.408A-5, Q&A-9(a)(1)
Additional Helpful Information
- A failed conversion is subject to correction VIA a recharacterization
- If the failed conversion is not recharacterized, it is treated as a regular distribution from the Traditional, SEP or SIMPLE IRA and a regular contribution to the Roth IRA, subject to the regular IRA contribution limit
