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Subject:  Last Day to Undo Roth Conversion? Date:  1/30/2011  11:45 AM
Author:  AcmeFool Number:  68347 of 88772

I've seen so much conflicting information out there that I am confused and thought I would seek help here. Links to major sites with clear explanations are appreciated...

The question: What is the last day I can undo a Roth IRA conversion?

Background: Last year, I converted my wife's Traditional IRA accounts to a Roth IRA Conversion. I kept the money separate from other Roth accounts just in case there was a chance to save money down the road... All of the money in the Traditional IRA was put in on an after-tax basis. (This was a long-planned thing to take advantage of the conversion rules since we make too much to contribute to a Roth IRA.) At the time of the conversion, the account had a net gain in value of around $4000. (If life had not been in the way of things, I could have converted earlier and had no tax consequence...grr...)

Anyway, I know I can undo the conversion if the market tanks. Then I wait 31 days and convert again with a (hopefully) lower gain to reduce the tax consequences. But what is the last day I can undo this conversion?

I have seen conflicting answers -- October 15 of the year after the conversion is the most common answer I see. But I also see the date when your taxes are filed. (Our taxes are ready to file and this is an issue holding me back at the moment.) I do understand that if I undo/reconvert, I will no longer be able to spead any taxes due over 2 years.

Thanks in advance!

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