I rolled over money from my traditional IRA to my Roth account. This
was a mistake. Can I roll it back and escape taxes?

Hello.

First of all, I must note that Google Answers provides general
information, not professional tax advice.  The information below may
or may not apply to your particular set of circumstances.  If you need
professional tax advice, you should contact a CPA or other tax
professional.

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Generally speaking, yes, it is possible to "roll back" funds to a
traditional IRA.  This is called a "recharacterization."


"Example: Taxpayer converted (rolled over) a regular IRA to a Roth IRA
on April 15, of 2001. On August 31, 2001 the taxpayer reversed this
conversion by recharacterizing it (transferring it back to a regular
IRA), in effect voiding the original transfer."
source: Kasper CPA: Taxation of Roth IRA Distributions
http://www.kaspercpa.com/rothirataxation.htm


"Example.     On March 1, 2004, when her Roth IRA is worth $80,000,
Allison makes a $160,000 conversion contribution to the Roth IRA.
Subsequently, Allison discovers that she was ineligible to make a Roth
conversion contribution in 2004 and so she requests that the $160,000
be recharacterized to a traditional IRA. Pursuant to this request, on
March 1, 2005, when the IRA is worth $225,000, the Roth IRA trustee
transfers to a traditional IRA the $160,000 plus allocable net income.
No other contributions have been made to the Roth IRA and no
distributions have been made."
source:
Publication 590
Individual Retirement Arrangements (IRAs)
http://www.missouribusiness.net/irs/publications/p590-7.html


"How to Recharacterize
...
A recharacterization must be done as a trustee-to-trustee transfer,
meaning the money moves from the Roth to the traditional IRA without
coming to you. You can move the Roth IRA to a traditional IRA with the
same financial institution (custodian) or a new one.
The recharacterization paperwork must include:
    * the amount of the conversion to the Roth that is being recharacterized,
    * the date on which the conversion was made to the Roth IRA and
the tax year for which it was made, and
    * the name of the trustee on the Roth IRA and the name of the
trustee for the traditional IRA (if different).

When you file your tax return, you report your recharacterization on
IRS form 8606. Your Roth IRA custodian will also issue a form 1099-R
reporting the IRA distribution. The form 8606 will show that the
distribution was a recharacterization."
source: Mpowercafe
http://www.mpowercafe.com/retirement/features/features.1.3.4_09042002.html

Thus, you should get in touch with the financial institution that
holds your Roth IRA, and request a recharacterization of the amount
that you rolled over.

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search strategy:
"convert * traditional ira" "it back"
ira recharacterization
rolled ira recharacterization "back to"

I hope this helps.

very good answer. it helped a friend.