Go to Jeff Salisbury LWGate Home Page.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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