| Reconversion | |
 A method used by individuals to minimize the tax burden of converting by recharacterizing Roth IRA-converted amounts back to a Traditional IRA and then converting these assets back to a Roth IRA again. Be aware that the IRS released regulations in 1999 placing limits on reconversions. |
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 Investors who want to reconvert to a Roth IRA must wait until the beginning of the new tax year following the tax year they recharacterized or a minimum of 30 days after the recharacterization is completed, whichever is later. For example, if you recharacterized a conversion contribution on Dec 15, 2004, you would not be able to reconvert until Jan 15, 2005. If you reconvert prior to these limits, the reconversion will be deemed a failed conversion by the IRS, and if not corrected may result in an excess contribution to the Roth IRA. |
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 Recharacterizing Your IRA Contribution or Roth Conversion - Learn reasons for making this transaction and the calculation of any earnings or losses. Did Your Roth IRA Conversion Pass or Fail? - If you are moving assets from a Traditional IRA to a Roth IRA, you need to know the associated tax rules. |
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