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.