New strategies emerge for Roth conversions

Bill Cass, CFP®, CPWA®

Bill Cass, CFP®, CPWA®, 03/19/19

New strategies emerge for Roth conversions

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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