Key components of tax bill continued…

So now that we know what the rates are, what else might you want to know that’s in the bill?  For starters, IRA savers will want to be aware of a key change to recharacterizations.  Under current law, if you convert a traditional Individual Retirement Account (IRA) to a Roth IRA, you can later choose to do a recharacterization back to a traditional IRA. The bill takes away the recharacterization provision that allows taxpayers to unwind a conversion.

So if you are deciding whether to do a recharacterization, make sure you have crossed your T’s and dotted your I’s, there is no going back anymore.