To recharacterize a conversion or contribution, you must move the assets from the IRA that first received the contribution (or conversion) to the IRA in which you want the assets to be maintained. Some financial institutions will process the recharacterization by simply changing the IRA from one type to another.o treat the $400 as a Roth IRA contribution, Jack must recharacterize the amount to his Roth IRA and must include any earnings or subtract any loss on the $400.