Roth Conversion Rules
Hello,
If I have a client that wants to have their 2017 Rollover Conversion amount coded for the 2018 tax year, can she do that?
She had a traditional IRA at another firm and completed a Roth Conversion there. She then moved to my firm, and completed a Rollover Conversion into her Roth IRA with me from the traditional at the other firm. Can she request to have the Rollover Conversion amount ($5500) re-coded as a 2018 IRA contribution?
Thanks!
Permalink Submitted by Alan - IRA critic on Fri, 2018-03-23 20:32
She could have the conversion recharacterized back to the TIRA, wait 30 days and then reconvert. The taxable income would then be in 2018 rather than 2017. Of course, any earnings after the conversion would transfer back to the TIRA and if reconverted would result in an additional amount being taxable.