A recharacterization allows a contribution made to one type of IRA to be treated as if it were made to another type. Essentially, you can "undo" a contribution made to one type of IRA and treat it as if it was made to the other, subject to IRS deadlines.
For instance, a $7,000 contribution to a Roth IRA may be recharacterized as a $7,000 contribution to a Traditional IRA instead. The annual IRA contribution limit is $7,000 for 2025.
This process allows adjustment to your retirement savings strategy if circumstances change or if you made a mistake in your initial contribution.
Deadline to Recharacterize
Recharacterizations must be completed by the federal tax filing deadline (including extensions) for the year in which the original contribution was made.
How to Request a Recharacterization
To initiate a recharacterization, submit the Roth IRA Distribution Form or IRA Distribution Form, depending on the source account. These forms are available in the Form Center.
Form instructions:
Select “Recharacterization” as the distribution type.
Calculate the gross distribution, including any net income attributable (NIA).
Indicate whether the contribution was made in the same year or a prior year.
Enter any applicable federal and state withholding amounts.
For delivery instructions, select “To the following Apex Account via Journal” and provide the account number of the receiving IRA.
Note: When processed, the recharacterized amount will be treated as a contribution to the receiving IRA.