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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: SC who wrote (1275)	1/16/2001 7:10:45 PM
From: stock leader	Read Replies (1) \| Respond to of 1383

maybe this excerpt will help explain it better: Taypayers may recharacterize until the due date (including extensions) of the tax return for the year in which a Roth conversion is made. So up until April 15th, 2001 for the 2000 tax year. A recharacterization election reverses the Roth conversion and turns the account into a "new" traditional IRA. A taxpayer can then reconvert that "new" IRA to a Roth IRA provided he or she meets the eligibility requirements in the reconversion year. Also if a taxpayer elected to report a conversion over 4 years , he or she must weigh the tax benefits of reconverting at a lower value against the benefits of being able to spread taxable income over four years.