Rescind 2010 Roth Conversion
I read that if a person chooses to convert regular IRA money to a Roth in 2010, using the 2010 special rules, that they will actually have until October of 2011 to rescind that decision, and return it back to a regular IRA, no harm, no foul, if they should choose to do so. Is this correct?Where can I look to get a good summary of all of the details of the 2010 conversion rules?
Thanks
Permalink Submitted by Alan Spross on Sun, 2009-11-22 21:37
Yes, this is correct. The 2010 conversion legislation only addresses changes to prior law. There was no mention of the recharacterization rules changing, so they are intact. Any Roth conversion can be fully or partially recharacterized up to the extended due date for the return of the conversion year. This has applied for all years since the Roth IRA began in 1998. That date for 2010 conversions would be 10/17/2011.
This will also be the deadline for electing to opt out of the two year income deferral. The exact forms and mechanics of doing this have not yet been announced by the IRS.