I funded my Roth IRA for the 2021 tax year in 2021 up to the max. However, my MAGI is over the income limit, so now I'm overfunded and will be charged 6% a year that I'm over. My Roth IRA funds are all in equity and I would rather not sell any to get below the limit. I've already funded my Roth IRA for 2022 so I can't just move funds from 2021 to 2022.
My question is: if I do an IRA Recharacterization from Roth IRA to Traditional IRA selecting just those assets to get me below the income limit to avoid a penalty do I keep my stock holding/cost basis/acquisition date, etc in the new Traditional IRA account? Or are my stocks liquidated at whatever the market is at at the end of the day I make my IRA Recharacterization request and I now have to reinvest those back into the stocks I had previously in my Roth account?
I hope this makes sense and if anyone has any suggestions on other options that I have available I'd appreciate it.
Submitted April 12, 2022 at 12:00AM by Cerealception https://ift.tt/gWxANtC
