Roth IRA Conversion Deadline Extended by IRS

CPAs should be advised that any taxpayer who mistakenly converted a traditional IRA to a Roth IRA last year, but later found out they were ineligible for the Roth, have until the end of 1999 to change their Roth IRA contributions or conversions back to traditional IRAs.

The original IRS filing deadline, known as recharacterizations, was October 15. However, since the Roth is a relatively new savings vehicle, the Service felt the deadline should be extended to make way for any final changes.

The improper conversion applies to anyone with more than $100,000 of income and married persons who cohabitated but filed separate returns.

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