After all the hoopla around Roth conversions in 2010, now is the time to consider whether or not a re-characterization is in your future..

If you made a Roth IRA conversions last year (when all the media were encouraging you to do so), you may rue your decision now that tax time has arrived.  Forbes recently ran a reminder that it’s not too late to undo your conversion decision.   You can still “re-characterize” the conversion and put the money back in your traditional IRA, as if nothing had ever happened. But why re-characterize? Here is the example Forbes used: Let’s say you converted $100,000 to a Roth IRA in 2010 and you are ready to pay the tax on your 2010 return (you elected…

Read More »