October 16, 2018

Roth IRA conversions can no longer be reversed

"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/

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