What Your Advisor Should Tell You About Recharacterizing a Roth IRA

Episode 41 of The Financial Advisor Podcast with Fexingo digs into the Roth IRA recharacterization — a move that lets you undo a Roth conversion and save on taxes. Lucas and Luna walk through a real-world example: a client who converted $100,000 to a Roth in late 2025, only to see the account drop 15% by spring 2026. Recharacterizing could cut her tax bill by thousands. They explain the IRS rule (you have until October 15 of the following year), the pro-rata complication if you already had pre-tax IRA money, and the one-per-year limit on recharacterizing conversions. Plus, they compare it to the backdoor Roth strategy and warn about the netting rule on gains. No fluff — just the specific mechanics and math a savvy investor needs to decide if recharacterizing makes sense. Perfect for anyone who did a Roth conversion early in 2026 and is now second-guessing. #RothIRA #Recharacterization #RothConversion #TaxPlanning #Retirement #BackdoorRoth #ProRataRule #IRARules #TaxEfficiency #FinancialPlanning #WealthManagement #IRS #Investing #Fiduciary #AdvisorTips #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo