The year 2010 enabled many retirement savers to convert a traditional IRA to a Roth IRA. When taking advantage of this conversion, you generally owe income tax on the amount you move over to the Roth IRA. Due to continued market volatility and financial woes, many retirement savers may want to undo their prior conversion. If you are in this group, be aware that the deadline for undoing a 2010 conversion is October 17 this year. However, before you act too quickly, there are a couple of things you should be aware of in making this decision.
For more information on Roth IRA conversions and “reversions,” read this.