Roth IRA Recharacterizations

What are they?

An IRA recharacterization is the process of changing the type or nature of a contribution made to an Individual Retirement Account (IRA). This allows you to correct or adjust your contributions between different types of IRAs, such as converting a contribution from a Traditional IRA to a Roth IRA or vice versa. Recharacterizations can be used to address situations where a contribution was made to the wrong type of IRA, to take advantage of potential tax benefits, or to rectify an error.

What are the prerequisites?

Recharacterizing your Roth IRA contribution is only available for Apex-cleared IRAs. Currently, recharacterizing contributions from a Roth IRA to a Traditional IRA isn't supported for Omnibus accounts.

To check if your account is under a Apex clearing arrangement or an Omnibus arrangement, please click here or visit the in-app Help Center after logging in and tap Account Conversion Status.

When is the deadline to submit my request?

This can be done for the previous year, provided the tax deadline has not yet passed, or for the current tax year.

How do I submit a recharacterization request?

Roth IRA recharacterizations can be done by filling out a Roth IRA distribution request.

• Recharacterize Cash and Securities

Fill out the NIA and Gross Distribution fields for both cash and securities.

• For Securities Only

Complete the Distribution of Securities section on page 2. Use the NIA of the securities based on their closing price from the previous day.

• Delivery Instructions

Indicate “To the Following Apex Account” and enter your Traditional IRA account number at Webull.

When completed, please send your signed form to IRA@Webull.com.