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NIA Calculation Worksheet for Partial Recharacterization of a Roth IRA Conversion

Last Updated April 4, 2009

Steps
What to do
How it is done
Input results here
Step 1:
Calculate the adjusted closing balance
  • Determine the value of the Roth IRA at the end of the computation period
  • Add any transfers that were made from the Roth IRA during the computation period
  • Add any distributions made from the Roth IRA during the computation period
  • Any recharacterizations of contributions or other conversions made from the Roth IRA during the computation period
 
Step 2:
Calculate the adjusted opening balance
  • Determine the value of the Roth IRA at the beginning of the computation period
  • Add any transfers that were made to the Roth IRA during the computation period
  • Add any contributions , including recharacterized contributions made to the Roth IRA during the computation period
  • Any conversions, including the conversion being recharacterized, during the computation period
 
 
Step 3:
Subtract the adjusted closing balance from the adjusted opening balance
Adjusted closing balance - adjusted opening balance
 
Step 4:
Divide the results from step 3 by the adjusted opening balance
(Adjusted closing balance - adjusted opening balance)
Adjusted opening balance
 
Step 5:
Multiply the results from step 4 by the Roth conversion amount that is being recharacterized
 
(Adjusted closing balance - adjusted opening balance)
 
 
x
 
 
Conversion
 
Adjusted opening balance
The results from step 5 is the NIA
 
Step 6:
Subtract the results from Step 5 from the conversion amount
Value of conversion ( when conversion occurred) + NIA
 
The result from step 6 is the market value of the assets that should be recharacterized.