Roth recharacterization question

[JGE]

This is a pretty basic - and simple, I hope - question, but I can't
seem to
find the answer. I convert some CASH from trad-IRA to Roth. I then
invest that cash, and the investment loses money. So I want to
recharacterize,
for tax savings. Can I do this, even though I converted cash, and
it's not
cash anymore ? Or do I have to recharacterize the SAME thing that I
converted (in which case I'd really want to invest the cash BEFORE
the
conversion) ?

Yes, I understand that I want to create a segregated Roth for the
conversion.
I've also read that I want to create a segregated trad-IRA before the
conversion,
but I don't understand why.

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[Phil Marti]

On Nov 10, 3:10�am, JGE wrote:

> I convert some CASH from trad-IRA to Roth. � I then
> invest that cash, and the investment loses money. � So I want to
> recharacterize,
> for tax savings. � �Can I do this, even though I converted cash, and
> it's not

> cash anymore ? �

Yes

> Yes, I understand that I want to create a segregated Roth for the
> conversion.
> I've also read that I want to create a segregated trad-IRA before the
> conversion,
> but I don't understand why.

Nor do I. Note that you don't HAVE to create a new Roth to receive
the conversion, but it does simplify things if you want to
recharacterize.

Phil Marti
Clarksburg, MD