Originally Posted by marc515
I converted a traditional IRA CD in January of 2012 to a ROTH IRA CD.
Well, I just did the taxes on trubotax and because of other income, our taxes are through the roof!
I'm looking to recharacterize the ROTH IRA CD back to a traditional IRA CD this week.
Question is: Do I get immediate credit on my 2012 taxes so I don't have to pay the taxes on the conversion?
.....basically...........you will report the net conversion.....0 in this case so you won't be taxed on it.....see the instructions for lines 16, 17, & 8 here
for form 8606.
You will also have to include a narrative description of the recharacterization so IRS knows what you did.
Hopefully the CD went into a separate Roth or at least 1 only containing other CDs . It could get a little messy if there were stocks in there and valuations changed resulting a different value to be removed back to the TIRA.