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Retirement tax questions
If you recharacterize the 2023 Roth IRA contributions to a traditional IRA and take the tax deduction now, then the entire IRA will be taxable when you convert it to a Roth later. If you don't take the tax deduction now (make the recharacterized contribution non-deductible), then the conversion in the future will be partly non-taxable. It's a matter of deciding when you want to pay the taxes, now or later. (Remember that unless Congress changes the law again, income tax rates will rise for all taxpayers in 2026.)
‎April 4, 2024
6:41 AM