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.