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Subject:  Reconverting Roth IRAs Date:  9/16/1998  8:03 AM
Author:  KATinChicagoland Number:  5454 of 95557

Reconverting is the hot topic in Roth IRAs now. If you fit the profile, you can reduce taxes on a Roth conversion (rollover) you completed earlier this year.

When you convert a regular IRA to a Roth IRA, the amount of tax you pay depends on the value of the IRA at the time of conversion. Many people have seen the value of their IRAs drop after a conversion or rollover and wish they had waited to convert at the lower value. As it turns out, they now have an opportunity to rewrite history.

The Treasury's new regulations on Roth IRAs make it clear that you can undo a Roth conversion for any reason at all, at any time up to your return due date. And the regulations don't prevent you from making a new conversion of the same IRA. If your IRA has had substantial losses since you converted it, you'll reduce your taxes if you undo the conversion and reconvert.

Complete details of these rules appear on my web site at:

Kaye Thomas, author
Fairmark Press Tax Guide for Investors

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