Undoing Roth

From: drstone@gsvms2.cc.gasou.edu
Subject: Undoing Roth
Date: Sun, 20 Sep 1998 19:26:16 -0500

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I know that Congress tinkered with the rules for Roth IRAs, so that it will
be possible to "undo" a change.  For instance, if  I transformed my IRA to
a Roth in May, then get a big salary bonus in December which bumps me over
the $100,000 limit, then I have until April 15 to undo the conversion (in
some fashion which I do not understand precisely).

	Does anybody know the rules well enough to answer questions:
(1) What circumstances allow one to undo the conversion to Roth?
(2) Could a person Roth, unRoth and then Roth again in 1998?

	Here's the idea that prompts such a question: if I had a deductible
IRA and converted it to a Roth IRA early in the year, say May, 1998, then I
owe income taxes on the value.  But if it were all in stocks or mutual
funds, there is a good chance the value is less now, so a conversion now
would incur less taxes.
	Thanks for any help.
David

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
David R. Stone                                   Office Phone: 912-681-5335
Department of Mathematics and CS      Office Fax:  912-681-0654
Georgia Southern University                  drstone@gsvms2.cc.gasou.edu
Statesboro   GA   30460-8093                Home Phone:  912-681-4048

"Make sure the same dog doesn't bite you twice."  Chuck Berry




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