If you drew the money from your IRA, you
have up to 60 days to return the money to
the account without tax consequences.
[note: 60 days, not two months.]
You may not borrow money from an IRA. Period.
So, if the days has passed, there is no
recharacterization, or replacement. The money
However, if this is money you deposited earlier
in the same year, as a deposit for that year,
you will simply be able to reduce or eliminate
the deduction for that same year.
i.e. you deposited $2,000 in January 2005 for
2005, but drew it out in March.
For more information, please see IRS Publication 590
Individual Retirement Arrangements (IRAs)
When you may withdraw IRA funds tax-free:
And, of course, the list of prohibited transactions
is topped by borrowing from it:
This section explains the rules on rollovers and what
the exceptions are to the 60-day rule (scroll down):
And since you asked about recharacterizations, here's
the scoop on that area of the law:
I know, this isn't what you wanted to hear. But it is the
tax law. Sorry.
P.S. Now, if you really want to know how to tap those
IRA funds tax-free...that's a whole other question.