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IRA Recharacterization

Use this page to perform a recharacterization from your IB Roth account to an IB Traditional, Rollover or SEP IRA account. An IRA recharacterization is a transfer of converted Roth IRA assets back to a new or existing Traditional IRA account. Roth IRA converted amounts from a SEP IRA may also be recharacterized back to a SEP IRA account.

The following rules apply to IRA recharacterizations:

• IB only allows full recharacterizations. For instructions on how to perform a partial recharacterization, see Partial IRA Recharacterizations
• If you request a recharacterization, your existing Roth IRA account will be closed upon completion of the transfer.
• Transfers of securities positions from a Roth IRA to an IB Traditional, Rollover or SEP IRA will only be accepted between accounts with matching names and taxpayer identification numbers.
• You must elect to recharacterize by your federal tax return due date of the year following the year of the conversion, including the additional maximum six-month extension allowed by the IRS.

Note:  If you are opening a new IB account for the purpose of doing an IRA conversion or recharacterization, you should select the funding option IRA Conversion or Recharacterization in the Funding section of the account application.

Who Can Access the IRA Recharacterization Page?

You can access this page if you are an IRA User with a Roth IRA account.

To perform an IRA recharacterization

1. Log into Account Management for the Roth IRA account you want to convert.
2. Click Funds Management in the left pane, then click IRA Recharacterization.
   
   Or, click Funds Management in the left pane, then click Position Transfers, then select IRA Recharacterization - Transfer Assets to Traditional/SEP Account.

3. Enter the username, password and account ID of the IB Traditional, Rollover or SEP IRA account to which you want to transfer your Roth IRA assets, then click Continue.
4. A confirmation number is sent to your email address of record. Enter the number on the next screen, then click Confirm.
   
   If you did not receive a confirmation number, click Request Token to receive a new confirmation number.

5. Click Continue. The status of your request appears on the screen.

For more information...

• IRA Types

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