Tag: Roth Conversion

Roth IRA Conversions 2021: Why You Should Do It Now

Roth IRA Conversions 2021: Why You Should Do It Now

There are so many benefits that come with the Roth IRA conversion. Roth IRA today has become so incredibly popular and there is a reason for that. The contributions to the Roth IRA are usually made with the income that has already been taxed, which means two things; 1) there will be no initial tax benefit to the money, and 2) that money will grow tax-free.  Another reason why the Roth conversions are popular today […]

Is it Possible to Reverse a Roth Conversion?

Is it Possible to Reverse a Roth Conversion?

As part of the Tax Cuts and the Jobs Act that were enacted in 2017, Congress eliminated the provision that made it possible for people to undo a Roth conversion. This conversion was called a recharacterization. This means that when deciding to convert your traditional IRA, it better be a conscious decision. Fortunately, if you made the decision to convert your traditional IRA prematurely, Roth conversions are almost always a good idea. Converting something in […]