Do you regret converting your traditional IRA into a Roth IRA? Fortunately, a taxpayer-friendly aspect of the Roth conversion rules is that you have until October 15 (adjusted for weekends) of the year following the year of a conversion to reverse it. In other words, the deadline for reversing any 2016 Roth conversions is October 16, 2017.
Why would you want to reverse your Roth IRA conversion? If the underlying assets held in your Roth IRA have performed poorly, causing the value of your account to plummet, you might want to reverse the account back to traditional IRA status. That way, you can avoid being taxed on account value that has disappeared since the conversion. Here’s how a reversal works. Read more