Loan & Distribution Specialist AimPoint Pension
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Regional Vice President of Sales The Retirement Plan Company
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AimPoint Pension
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Compass
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Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
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Bates & Company, Inc.
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Unlike Most Investment Decisions, If Roth Conversion Doesn't Go As Well, You Can Have a 'Do Over'
On Wall Street [Guidance Overview] Feb. 1, 2010 "[W]hat if a client converts in 2010 and the account continues to lose value after the conversion? The tax due on the Roth IRA is based on the value of the account at the time of conversion, so your client would face a higher tax bill. This is the kind of situation where you can take a 'do over.' The Roth recharacterization rules provide that a poor performing Roth account can be recharacterized back to a Traditional IRA, with no income tax consequences, until as late as Oct. 15 of the year following the year of the conversion." |
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