Fear Not: There's Still Time to Reverse IRA Conversion

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Fear Not: There's Still Time to Reverse IRA Conversion - by Humberto Cruz/Tribune Media Services

Some who converted to a Roth IRA may not have realized that the converted amount can make their income for the year so high that they suffer other negative consequences (e.g., higher tax bracket; loss of itemized deductions; loss of tax credits; taxation increase to Social Security Benefits; future Medicare Part B and Part D premiums to increase)

Richard

 

[PigsDad]

It's good to know the conversion can be undone up until 17 Oct 2011, but for us, the Roth conversion is a no-brainer. All of our contributions to our IRAs were made with post-tax dollars, so the amount that is taxable for the conversion is minimal. The ability to move those accounts to a Roth with the almost 100% probability of higher taxes in the future during retirement makes it a great deal for us.

Kurt