Re: Undoing Roth

From: jeff@scrooge.csd.sdl.usu.edu (Jeff Salisbury)
Subject: Re: Undoing Roth
Date: Fri, 2 Oct 1998 16:47:30 -0600

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On Sep 20,  7:26pm, drstone@gsvms2.cc.gasou.edu wrote:
> Subject: Undoing Roth
> 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
>
> - -
>-- End of excerpt from drstone@gsvms2.cc.gasou.edu


David,

I've read at least two articles now that indicate that you can do exactly what
you outline hear.  If it were me, I would do it if the tax savings were worth
my time...

Jeff

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