qbteachmt
Level 15
03-14-2020
12:05 PM
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it's not "recharacterized."
It's a "Back Door Rollover." Basically a type of conversion, from Basis (nondeductible Traditional IRA) to Roth (which is always nondeductible).
And your client has to have No Other Basis in any Traditional IRA or tax deferred account, for this to work. Otherwise, you have a regular conversion with a taxable percentage.
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Don't yell at us; we're volunteers