If you converted a traditional IRA to a Roth IRA in 2013, the IRS allows you to “recharacterize” the conversion if necessary. (See IRS law on this at Reg. 1.408A-5.) But the due date of Oct. 15, 2014 is quickly approaching. You can reverse a 2013 Roth conversion by executing a direct transfer of funds from it back into a traditional IRA. If you already filed your 2013 individual tax return reporting the Roth conversion amount in gross income, you’ll need to file an amended tax return to reduce the income accordingly. Generally, when financial markets rise, there are fewer recharacterizations, but if your account dropped in value, it may be a good idea.
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