October IRA deadlines

October is a special month.  For those who filed an extension the 15th of October (shy of weekends) is the last day to file your tax return for the prior year.

THere are however dates that are very important to IRA accounts.  For people who have converted IRA money to Roth IRA money they can recharacterize any or all of the money they converted.  The point here is is you converted and the investment under performed or lost money between the conversion and now – you get a do over.  That is you can have all of that tax money you paid back and turn that investment back to a Traditional or Rollover IRA.  You have to wait before you can reconvert that investment to a Roth IRA again.  However, you do have that option.

If you for some reason have an excess contribution to an IRA or Roth IRA you can remove that money without penalty, if done by October 15th.

Now this last date is interesting.  It is very rare that a Trust should be the beneficiary of an IRA.  However, if you are in that situation you have until October 31 to deliver a copy of the trust documents to the IRA custodian.  If you miss this date – you don’t get a do over.  Pretty black or white – do or no do, there is no try (Yoda).