Recharacterizations of IRA Contributions
Customers who wish to change the nature of an IRA contribution may recharacterize the contribution prior to the due date (including extensions) for filing the customer’s federal income tax return for the year for which the contribution was made to the IRA. The deadline to process a recharacterization of a contribution made for 2019 is October 15, 2020.
Customers can request a recharacterization by completing the Premiere Select IRA Recharacterization Request form which must be submitted to National Financial Services LLC (NFS) for manual processing. The form (1.747222.107) is available on the Marketing Fulfillment Central Web site which can be accessed from Wealthscapesm [Wealthscape > Resources > Marketing Fulfillment Central] or from the Web [https://www.nfmarketingcentral.com]
A recharacterization processed in 2020 will be reflected on the 2020 1099R and 5498 forms that will be mailed in January 2021. A recharacterization does not affect a prior year tax form.
Return of Excess IRA Contributions
Customers who have made an excess IRA contribution have until the due date (including extensions) for filing their federal income tax return to request a Return of Excess (ROE) Contribution. The deadline to process a ROE for a contribution made in 2019 is October 15, 2020. Note: Excess IRA contributions for a year that are not withdrawn by the deadline are subject to a 6% penalty tax. The 6% penalty applies for each year the excess remains in the IRA. In addition, the earnings on the excess contribution may be subject to a 10% penalty. Customers can request a ROE by completing a Premiere Select IRA One Time Distribution Request form (not required for accounts governed by Asset Movement Authorization).
Correspondents can process ROEs in the Integrated Cashiering Platform (ICP). To ensure that a ROE for a contribution made in 2019 is processed prior to the customer’s deadline, correspondents have until 4 PM ET on October 15, 2020 to enter and approve the transaction.
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TC117341(1020)1