Recharacterization
The treatment of a contribution as being made to another type of IRA instead of the IRA to which the contribution was initially made. Investopedia Says:
For instance, an individual may make a participant contribution to a Traditional IRA but may later recharacterize the contribution to a Roth IRA.
Roth IRA conversions can be reversed by means of a recharacterization, however, this movement of assets must include earnings (or losses). Related Terms:
In-Service Withdrawal
IRA
IRA Adoption Agreement and Plan Document
IRA Conversion
Non-Qualified Distribution
Ordering Rules
Qualified Distribution
Reconversion
Required Minimum Distribution
Roth IRA
Spousal IRA
Triggering Event |