Under tax reform, taxpayers can still act on a Roth IRA conversion, but the option to recharacterize — or undo the conversion — is no longer available. Chris Hennessey explains how this rule change influences planning strategies. He adds that more careful analysis is needed when deciding whether to do a Roth IRA conversion.
- Review the conversion option later in the year when there is a clearer picture of one’s marginal tax bracket, which will affect the cost of a conversion
- Business owners may be able to use a net operating loss carryforward to offset a Roth conversion
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For informational purposes only. Not an investment recommendation.
This information is not meant as tax or legal advice. Please consult with the appropriate tax or legal professional regarding your particular circumstances before making any investment decisions. Putnam does not provide tax or legal advice.