I have some questions regarding converting from conventional IRA to Roth. I have a fair amount of traditional IRA accounts. I would like to perform some conversions should that be favorable. I would like to make conversions closer to the market bottom because they are stock accounts and the tax cost will be reduced. My understanding is that if you convert to a Roth, you can recharacterize back to a conventional IRA after 31 days. If it seems that I did not identify the market bottom, there would be a way to restore. My additional understanding is that after another 31 days, you can reconvert again. If I am right, it means that if you convert and a month later the market is way down, you can go back and hope that it stays down for 31 days and then the tax liability can be reduced. If we are at a potential low right now, I should perform the conversion and monitor the market.

Am I missing something or is what I am saying basically correct? Thanks for any responses.

What you're saying is NOT correct.

Two major problems with your plan. First, it is not possible to know when you reach a stock market bottom, or for the matter a top. Second, you can't game the system multiple times in one year. Get a copy of Pub 590 from the IRS and read the recharacterization section very carefully. Getting a custodian to do the paperwork correctly just once is a challenge.

This falls into the catagory of "clever" schemes that should clearly seem to good to be true.... like opening dozens of IRAs with each one having $2,000. That doesn't work either.