Roth IRA Reconversion: Understanding the Process & Implications
A Roth IRA reconversion allows you to change your Roth IRA back into a traditional IRA. Here are the basics of the Roth IRA conversion.
Roth IRA Conversion
Many individuals that convert their traditional IRA over to a Roth IRA decide that they want to convert back at some point soon after. Luckily, the IRS has made a provision for those that want to change their accounts back over to a traditional IRA.
Reconversion
In order to complete this process, you will need to alert your financial broker that you want to convert back. They will have some forms for you to fill out. You will then need to alert the IRS that you are changing back to a traditional IRA.
If you plan on reconverting, you are going to have to do so before you file your taxes. This means that if you are filing on time, you have until April 15 to do so. If you are filing late, you can wait until October 15 to reconvert. If you have recently converted over to a Roth IRA, you will have to wait at least 30 days before you can reconvert to a traditional IRA.
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- Roth IRA Income Limits & Phaseouts: What You Need to Know
- Roth IRA Conversion: Benefits, Process & Tax Implications
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- IRA Explained: Your Guide to Individual Retirement Accounts
- IRA Explained: Your Guide to Retirement Savings & Tax Benefits
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