Common use of Contribution/Conversion Clause in Contracts

Contribution/Conversion. You may “recharacterize” a contribution/conversion made to one type of XXX (either Traditional or Xxxx XXX) and treat it as if it was made to a different type of XXX (Traditional or Xxxx XXX). Both the contribution/conversion amount and the net income attributable to the contribution/conversion must be transferred. If there was a loss, the amount of any loss will reduce the amount you recharacterize. The deadline for completing a recharacterization is your tax return due date (including any extensions) for the year for which the contribution/conversion was made to the first XXX. Recharacterization requests must be made in a form and manner acceptable to the Custodian. Report recharacterizations to the IRS by attaching a statement to your Form 1040. You may also need to file Form 8606 with your income taxes. For assistance with recharacterizations, refer to IRS Publication 590 and/or your tax advisor.

Contribution/Conversion. You may “recharacterize” a contribution/conversion made to one type of XXX IRA (either Traditional or Xxxx XXX) and treat it as if it was made to a different type of XXX IRA (Traditional or Xxxx XXX). Both the contribution/conversion amount and the net income attributable to the contribution/conversion must be transferred. If there was a loss, the amount of any loss will reduce the amount you recharacterize. The deadline for completing a recharacterization is your tax return due date (including any extensions) for the year for which the contribution/conversion was made to the first XXXIRA. Recharacterization requests must be made in a form and manner acceptable to the Custodian. Report recharacterizations to the IRS by attaching a statement to your Form 1040. You may also need to file Form 8606 with your income taxes. For assistance with recharacterizations, refer to IRS Publication 590 and/or your tax advisor.