What is the deadline for completing a recharacterization? You cannot recharacterize a Roth conversion. A recharacterization is a trustee-to-trustee transfer of the original contribution plus any related earnings. You should report the contributions as if they had been originally made to the IRA to which the contributions were moved. If you made contributions to a traditional or Roth IRA, a recharacterization changes the nature of the contributions. You should receive Form 1099-R for the distributing traditional/SEP/SIMPLE IRA or employer qualified plan and Form 5498 for the receiving Roth IRA.Ĭan I recharacterize a traditional or Roth IRA contribution? What tax forms should I receive related to my Roth conversion? Use IRS Form 8606 to determine your taxable amount. Conversions are taxable in the year the distribution occurred. What are the tax implications of my Roth conversion?Īll or a portion of the amount you converted may be taxable to you in the year of your Roth conversion. You can roll over the distribution to a traditional IRA and then convert the traditional IRA to a Roth IRA.This type of conversion is referred to as a "qualified rollover contribution." You can move the distribution directly to a Roth IRA.There are two ways a distribution from your company retirement plan/403(b) plan/governmental 457 plan can be moved to a Roth IRA: For additional information regarding the unique attributes and risks of the ETF, see the Principal Risks section of the prospectus.Ī Roth conversion is a reportable movement of assets from a traditional/SEP/SIMPLE IRA or employer qualified plan to a Roth IRA. If other traders are able to copy or predict the ETF’s investment strategy, however, this may hurt the ETF’s performance. By keeping certain information about the ETF secret, this ETF may face less risk that other traders can predict or copy its investment strategy. The differences between this ETF and other ETFs may also have advantages. While the Proxy Portfolio includes some of the ETF’s holdings, it is not the ETF’s actual portfolio. The ETF will publish on its website each day a “Proxy Portfolio” designed to help trading in shares of the ETF. These additional risks may be even greater in bad or uncertain market conditions. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders. The price you pay to buy ETF shares on an exchange may not match the value of the ETF’s portfolio. This ETF will provide less information to traders, who tend to charge more for trades when they have less information. You may have to pay more money to trade the ETF’s shares. This may create additional risks for your investment. This ETF is different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day.
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