Sunday, September 12, 2010 - 6:20 AM

A 'Roth Mulligan' Just Might Be Worth A Shot

This Washington Post article has a tip to consider if you hold mutual funds in a Traditional IRA that's being converted into a Roth. It's not useful for those who hold CDs in the IRA. Here are some excerpts:

But what if you've converted from a traditional IRA to a Roth and then the value of your investments drops? [...] Well, in the Roth conversion world, you have an opportunity to undo what you did. Call it a Roth mulligan.

KenBDG5,146 posts since
Nov 29, 2009
Rep Points: 117,025

1. Sunday, September 12, 2010 - 8:25 PM

Another nice reason about having the choice of undoing a Roth conversion or to split the money between 2 years is if you accidently go into another tax bracket or are on Medicare and because of interest go over $170,000 limit to trigger higher premiums.

rosie43183 posts since
Jan 16, 2010
Rep Points: 568