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Financial Planning / Tax Strategies
|Subject: Re: Roth IRA Recharacterization||Date: 9/15/2013 6:01 PM|
|Author: TMFPMarti||Number: 119147 of 122553|
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.
Why? IMO it's of no concern to OP what Schwab's books look like, although I'd suspect that Schwab did what you're suggesting at the time of the recharacterization. They just don't want to be bothered doing favors for a former customer.
To calculate the amount to be sent to the traditional IRA in a recharacterization you need to know
1. The amount converted
2. The value of the Roth immediately before conversion.
3. The value of the Roth immediately before the recharacterization.
OP should have all these numbers at hand. I don't know what the Vanguard worksheet wants, but it should be something along the lines of Worksheet 1-3 on page 32 of Pub 590.
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