Weather
The Pine Tree, News for Calaveras County and Beyond Weather
Amador Angels Camp Arnold Bear Valley Copperopolis Murphys San Andreas Valley Springs Moke Hill/West Point Tuolumne
News
Business Directory
Weather & Roads
Sports
Real Estate
Search
Weekly & Grocery Ads
Entertainment
Life & Style
Government
Law Enforcement
Business
Wine News
Health & Fitness
Home & Garden
Food & Dining
Religion & Faith
Frogtown USA
Legal Notices
Calendar
Polls
Columns
Free Classifieds
Letters to the Editor
Obituaries
About Us

Coming Soon...
Tuesday, Jan 22
05:00 PM Chili Tuesdat Fundraiser for Mountain Melody
05:00 PM The January 22, 2019 CUSD Board Meeting Agenda
06:45 PM Valley Springs' Rachelle Snitchler to Speak at Toastmaster's Open House, January 22nd
Wednesday, Jan 23
05:00 PM MTUSD Board Holding Study Session on January 23rd
06:00 PM Overeaters Anonymous (OA) Meeting
Friday, Jan 25
05:30 PM Friday Night Music at Alchemy
Saturday, Jan 26
11:00 AM Town Tours of Columbia State Historic Park Every Weekend!
06:00 PM Song Posse
Sunday, Jan 27
11:00 AM Town Tours of Columbia State Historic Park Every Weekend!
Tuesday, Jan 29
01:00 PM “Voices of Wisdom” Writing Classes for Seniors 55+
Wednesday, Jan 30
08:30 AM Agritourism Intensive class
06:00 PM Overeaters Anonymous (OA) Meeting
Thursday, Jan 31
All Day Agritourism Intensive class
Friday, Feb 1
All Day Agritourism Intensive class
05:30 PM The Chamber of Commerce's Annual Dinner is February 1st
05:30 PM Friday Night Music at Alchemy
Saturday, Feb 2
08:00 AM Firefighters Pancake Breakfast
All Day Agritourism Intensive class
10:00 AM Old Timers Museum Walking Tours Are Every Saturday at 10am.
Sunday, Feb 3
All Day Agritourism Intensive class
11:00 AM Town Tours of Columbia State Historic Park Every Weekend!
Monday, Feb 4
All Day Agritourism Intensive class

Search Announcements




Log In
Username

Password

Remember Me



Posted by: thepinetree on 10/10/2017 12:47 PM Updated by: thepinetree on 10/10/2017 01:25 PM
Expires: 01/01/2022 12:00 AM
:

Deadline Approaching for Undoing a 2016 Roth IRA Conversion ~ From Brian J. Tewksbury

Murphys, CA...If you converted a traditional IRA to a Roth IRA in 2016 and your Roth IRA has sustained losses, you may want to consider whether it makes sense to undo (recharacterize) your conversion. You have until October 16, 2017, to undo your 2016 conversion.* A recharacterization can help you avoid paying income tax on IRA assets that have lost value since the conversion. When you recharacterize, your conversion is treated for tax purposes as if it never happened.




For example, assume you converted a fully taxable traditional IRA worth $100,000 to a Roth IRA in 2016. Further assume that your Roth IRA is now worth only $60,000. If you don't undo the conversion, you'll pay federal (and possibly state) income tax on $100,000, even though the current value of those assets is only $60,000. If you recharacterize, your IRA administrator will make a direct transfer of the assets from your Roth IRA back to your traditional IRA. For tax purposes, you'll be treated as though the conversion never happened, and you'll wind up with no resulting tax bill (or a tax refund if you've already filed and paid taxes on the conversion).
(Note: Your Roth IRA doesn't need to sustain losses in order for you to recharacterize your conversion. You can do so for any reason. For example, you may simply have changed your mind and no longer wish to pay the additional conversion taxes in/for 2016.)

If you recharacterize your 2016 conversion, you're allowed to convert those dollars (and any earnings) to a Roth IRA again ("reconvert"), but you must wait 30 days, starting with the day you transferred the Roth dollars back to a traditional IRA. Keep in mind that even though the amount you recharacterized (and any earnings) is subject to a 30-day waiting period, any additional amounts in your traditional IRAs are not subject to the waiting period, and you can convert all or part of those dollars to a Roth IRA at any time. If you reconvert in 2017, then all taxes due as a result of the conversion will be included on your 2017 federal income tax return.
(You can also recharacterize a 2017 Roth conversion. However, the deadline for doing so isn't until October 15, 2018.)

Whether it makes sense to recharacterize your Roth conversion depends on several factors, including the extent of the losses in your Roth IRA and your expectations of where the markets may be headed.

*If you already paid your taxes for 2016, you'll need to file an amended return to obtain a refund for any taxes paid on the conversion. An amended return can generally be filed as late as three years after the original return was filed. Consult your tax professional.


What's Related
These might interest you as well
phpws Business Directory

Photo Albums

Local News

Calendar


Mark Twain Medical Center
Meadowmont Pharmacy
Bank of Stockton
Bear Valley Real Estate
Bear Valley Cross Country
Cedar Creek Realty
Cave, Mine & Zip Lines
Fox Security
Bistro Espresso
Pinnacle Physical Therapy
Chatom Winery
Middleton's Furniture
Bear Valley Mountain Resort
Paul D. Bertini
Premier Properties
High Country Spa & Stove
Calaveras Mentoriing

Ebbetts Pass Scenic Byway
Sierra Logging Museum
Jenny's Kitchen

Copyright © The Pine Tree 2005-2018