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Old 05-17-2017, 03:27 PM
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Join Date: May 2017
Posts: 2
Roth Recharacterization Limbo !!!

several years ago I did a conversion from my traditional IRA to a ROTH? as we know , this creates a distribution and thus a taxable event.

However I also did a recharacterization, which is part of the tax code and allows me to ?reverse? some/all of the conversion AFTER THE FACT. in my case I recharacterized $10k which means documented this on my 1040 and sent a check for the net distribution (ie the original conversion minus this $10k)
. I also instructed Fidelity to move that $10k back to to traditional IRA

IRS however insisted I pay additonal tax on that $10k claiming it was a taxable distribution. I paid the tax but that $10k is not in the ROTH ? it is back in the Traditional

IRS claiming im past the deadline to amend my return.
What can i do ? the bottom line is I have paid tax on $10k of money that is sitting in my traditional IRA and not in my Roth! I dont think I should have to pay the same tax twice on the same dollar regardless of deadlines??

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