The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Roth IRA Recharacterization||Date: 9/15/2013 9:07 AM|
|Author: Wradical||Number: 119144 of 122523|
Vanguard says I must obtain a recharacterization from Schwab for the period the Roth funds were at Schwab, which is understandable. But the folks at Schwab promise action and do nothing.
Is there any legal or IRS requirement that the recharacterization information must come from Schwab? What I am considering is I collect the data for the period the funds were held at Schwab and fill out the Vanguard forms.
Ultimately the responsibility falls on you. There is no requirement that you have a third-party calculation of the recharacterization. It seems to me that there's only one number you need from Schwab--the value of the Roth account before the conversion. The confirmation of the conversion should have that, or what you need to back into it.
What am I missing?
Rule Your Retirement Home Fool
I think what's being missed (by all involved, except maybe Vanguard) is that what Schwab has to do is make a memo entry in their records to record the fact of the recharacterization of the Roth account back to a trad. IRA. That much is needed, and nothing more. They no longer have the funds there, so it probably seems like a strange request.
Would have been better to transfer funds first, and then do the Roth conversion at Vanguard.
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