Roth Recharacterization after 12/31/2017?
Based on the Final version of Tax Reform Bill released 12/15/2017, can a taxpayer recharacterize a Roth conversion done in 2017, in 2018? Or would the last day to recharacterize the Roth conversion (back to a traditional IRA) be 12/31/2017?
Any resources would be appreciated, thank you for your time.
Permalink Submitted by Alan - IRA critic on Mon, 2017-12-18 17:05
Still an open question that needs clarification. The conference edition of this provision refers to taxable years after 2017, but a recharacterization in 2018 of a 2017 conversion applies to the 2017 tax year and is coded on the 1099R to reflect that. It is not clear whether this provision is based on the tax year affected or on the tax year in which the recharacterization is actually processed. Since most 2017 conversions were processed before this restriction was known it would certainly be more equitable to allow 2017 conversions to be recharacterized under the prior rules, but that remains to be seen.