Online re-characterization

[Neill]

In searching I found an online form at Fidelity to do re-characterizations of either contributions to IRA or Roth IRA or conversions to Roth IRA. Since I hate talking to people I like this option. I was wondering if others had used this option and could say how long the process took?

 

[LOL!]

While I haven't done it at Fidelity, I have done recharacterizations at three other brokers with no issues whatsoever. In two cases, I filled out forms and sent them as attachments to the private messaging within my account. At another, I simply mailed the form in. Recharacterizations took place in all cases the day the forms were received in "good order." In one case, I got a question back by private messaging which was cleared up, so recharacterization took place at the close of market that day.

I used to not like talking to people on the phone, but when I lived in a non-English-speaking foreign country, I got over that. Your reps really want to help you, so if you are not comfortable with talking on the phone, one way to get comfortable is to talk on the phone.

 

[braumeister]

If you're concerned about getting it done before the filing deadline, no problem.

Last time I recharacterized a conversion at Fidelity, I did it online and it happened overnight.

 

[ocean view]

I was revisiting the recharacterization rules last night and the IRS is quite generous. From the IRS IRS FAQ page: https://www.irs.gov/retirement-plan...cterization-of-roth-rollovers-and-conversions

You generally can recharacterize your rollover or conversion by October 15 of the following year, regardless of whether you requested an extension to file your tax return. For example, for your conversion to a Roth IRA in 2013, you have until October 15, 2014, to recharacterize. This deadline applies even if:

• you did not request an extension to file your 2013 tax return, and
• you file your return on or before April 15, 2014.

 

[misanman]

In searching I found an online form at Fidelity to do re-characterizations of either contributions to IRA or Roth IRA or conversions to Roth IRA. Since I hate talking to people I like this option. I was wondering if others had used this option and could say how long the process took?

I've re-characterized online more that once and I think it was processed right away. It may have taken overnight to show up correctly, I don't remember. At any rate, it was extremely easy.

 

[Neill]

I see now there is a 'My Transactions' page you can get to from 'Activities and Orders'. That shows the pending re-characterization and tells me it will take another business day.
I get my taxes done pretty early but because I get a lot of corrected 1099's I don't file till very close to the deadline. That means I have to wait to do the re-characterization till near filling time as well. Not in my nature to delay but you're forced to. I want to avoid extending the return if I can.
Thanks for the input.

 

[DAYDREAMER]

Does a rollover from a taxable 401k to a Roth IRA need to recharacterize if my income was over the limit? I've already recharacterized the monthly contributions made to the Roth for 2016.