@Yakman wrote:
Appreciate the advice in this thread, I am in a similar situation to the original author except with an added complication and would welcome any insights. At the end of 2020 I had a balance in a Traditional IRA account and this generated an increase in taxes due. I am considering all options and wanted to know how I can reverse the backdoor conversion to Roth and treat my contributions as non deductible IRA contributions for 2019 and 2020 (both made in 2020). I understand I can do this without the 6% penalty for 2020 (if completed by 5/17/21). For 2019, will the penalty be 6% or 12%? If I choose to do this in TT, what are the steps? thanks
If you already did a conversion for a Traditional IRS to a Roth then the Tax Cuts and Jobs Act (TCJA) of 2017 eliminated the possibility of un-doing (recharacterizing) a conversion for tax years 2018-2025. Once converted it cannot be un-done any more.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
