recharacterizing ira tax implications
Perhaps a CPA here can answer this question; I asked mine, and he didn't know as I was the first to pose this question to him. He offered to research it, but that costs me money that I don't have now...
Earlier this year I converted my IRA to a Roth IRA. The account has been dormant since; I haven't added or subtracted any money, and it's been sitting in cash the entire time. Zero activity.
I'm now looking to RE-characterize my IRA back into a traditional IRA, to roll it into my 401k and use it that way for my RE purchases.
Question is this; recharacterizing a traditional into a Roth triggers a taxable event. Would the re-characteization of the account BACK into a traditional IRA nullify that original taxable event, or am I on the hook for some portion?