“It’s about the only tax do-over you can get,” states today’s article of the tax trick highlighted. The trick in question? Converting a traditional IRA (and its pre-tax savings) to a Roth IRA (with after-tax savings) – a conversion that comes with the option to change your mind and undo it. The author notes that this do-over option might be particularly useful this year as Washington works on tax reform “that could wipe out the advantages of a conversion or make it cheaper to convert in another year or two rather than now.” To read more about Roth IRA conversions and the mechanics of a do-over, CLICK HERE.
Why This “Do-Over” Tax Trick May Prove To Be Particularly Useful This Year
- by Bob Mitchell