Recharacterizing a Roth Conversion After the Owner Has Died

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Recharacterizing Roth IRA Conversions

With the market downturn in recent months, clients may want to hit the free "undo" button on their Roth accounts.

How to Recharacterize a Roth IRA Conversion

The nice thing about a Roth conversion is that you can always change your mind and recharacterize the account back to a traditional IRA if account values drop or income rises. However, the rules are complex and a misstep could result in taxes, penalties, and frustrated clients.