Roth Conversions and Tax and Jobs Act 2017
Is it true that the ability to make Roth Conversions from Traditional IRAs is stopped as part of the Tax and Jobs Act of 2017? If yes, is there a retroactive date? Thanks and Happy Holidays!
Is it true that the ability to make Roth Conversions from Traditional IRAs is stopped as part of the Tax and Jobs Act of 2017? If yes, is there a retroactive date? Thanks and Happy Holidays!
Permalink Submitted by Alan - IRA critic on Thu, 2017-12-14 18:03
Conversions are not limited, but the ability to recharacterize those conversions would be eliminated starting in 2018 under both chamber’s bills now being unified in conference. In other words, no do-over and your conversions will be permanent. The IRS will likely have to clean up the loose ends with revisions to the Regs. For example, there is a question whether a 2017 conversion can be recharacterized after the end of 2017 or not.