"As a result of the Tax Cuts and Jobs Act signed into law late last year,
investors who convert a traditional IRA or other tax-deferred
retirement account to a Roth IRA after December 31, 2017, can no longer recharacterize (in other words, reverse) the conversion."| Q. | What types of IRA recharacterizations have been eliminated? |
| A. | The law eliminated the option to recharacterize conversions made after December 31, 2017, from a traditional, SEP, or SIMPLE IRA, or from a 401(k) or 403(b) retirement plan account, to a Roth IRA. |
| Q. | Can IRA contributions still be recharacterized? |
| A. | Yes. The law didn't impact the ability to recharacterize IRA contributions. Contributions to a traditional IRA can still be recharacterized to a Roth IRA, and Roth IRA contributions can be recharacterized to a traditional IRA, if they're completed prior to the applicable IRS deadline. |
Quoted from Vanguard. For more details see: https://investornews.vanguard/the-new-tax-bill-and-ira-conversions-how-should-investors-respond/
No comments:
Post a Comment