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    Roth conversion to traditional IRA

    Taxpayer converted several thousand from a traditional IRA, doesn't like the tax bill and now wants to convert back. Financial advisor says taxpayer can do this as long as it is before 4/15/09 - and wants me to re-do the taxes.

    The original conversion took place last September - how can this be done?

    My mind is swimming, am I missing something?
    Last edited by Jesse; 04-03-2009, 12:04 PM. Reason: Disregard title s/be from NOT to
    http://www.viagrabelgiquefr.com/

    #2
    Recharacterization can be done on 2008 conversion until 10-15-2009

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      #3
      Some Help....

      I received a pamphlet from Harrison Building and Loan (a local savings and loan in Harrison, OH) which listed this question:

      Q. After I converted to a Roth IRA, I spoke with my tax advisor. He said it wasn't a good idea in my situation. Can I reverse the transaction?

      A. Yes. You can recharacterize the transaction back to a Traditional IRA contribution, provided it is done before the due date of your tax return for the year of the contribution, including extensions.

      I don't really have first hand experience with this but thought I would pass this along in case someone with more experience doesn't reply. I believe they call these "a failed conversion."

      Also, I do know there is a new rule in 2010 that will allow someone to convert money from a Traditional IRA to a Roth IRA even if there income is over $100,000. It will also allow them to defer taxation until 2011 and 2012, if desired.

      Hope that helps!

      Mo

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        #4
        Definitely helps, Thank you!



        In case anyone else needs a direct link.
        Last edited by Jesse; 04-03-2009, 01:04 PM. Reason: In case anyone else needs a direct link.
        http://www.viagrabelgiquefr.com/

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