topic Re: converting ira to roth in Retirement tax questions

converting ira to roth

user17610012171 — Wed, 22 Oct 2025 16:39:36 GMT

I have been converting money from my IRA into a Roth for the past 5 years. I move just enough to stay in the lower tax bracket. Last year I was caught by surprise from my advisor that had sold shares in a non-qualified account which caused a capital gains of over $25,000. I was not expecting that and had to pay an additional $5000 in personal income tax. I want to avoid that this next year. Can I convert a certain mount before Dec 31, figure what my taxes would be after Jan 1, and repay to my IRA within the 60-day period if the amount I am converting puts me in a higher tax bracket for 2025? If I can do that, does it jeopardized in conversion I would want to do in 2026?

Re: converting ira to roth

Katie-P — Wed, 22 Oct 2025 17:43:45 GMT

The deadline to convert from a traditional IRA to a Roth IRA is December 31st of the year in which you want the conversion to be effective. You cannot reverse it or undo it. I advise you to work with your advisor to ensure that their actions do not put your Roth tax planning in jeopardy.

Re: converting ira to roth

user17610012171 — Wed, 22 Oct 2025 18:25:22 GMT

I understand the deadline to convert. Is converting treated different different than withdrawal from a traditional IRA. You have 60 days to repay without being taxed. Is that not the same on a conversion withdrawal? You do or do not have 60 days?

Re: converting ira to roth

Katie-P — Wed, 22 Oct 2025 19:00:43 GMT

What you asked originally is if you can convert from a traditional IRA to a Roth IRA by the December 31st deadline and then do anything to reverse that, and the answer is no.

But if you are instead wanting to take a distribution from your traditional IRA, then decide if you want to put it back or put it into a Roth IRA, you can do that, as long as it's within 60 days, as you mentioned. Just remember that the option to put the money back into a traditional IRA can only be done once in any 12-month period across all your IRAs. This limit doesn't apply if you decide to complete the conversion into the Roth IRA.

I hope this clarification helps!

Re: converting ira to roth

user17610012171 — Wed, 22 Oct 2025 19:01:21 GMT

I got my answer from AI. You could do that prior to 2017, however today it cannot be undone once it is finalized.

Thank you

Re: converting ira to roth

Katie-P — Wed, 22 Oct 2025 19:12:59 GMT

It is correct that the Tax Cuts and Jobs Act in 2017 eliminated conversion reversals, which is what I addressed in the first answer I provided. Your second question was about taking a distribution, then giving yourself 60 days to decide what to do. The TCJA did not eliminate that strategy. I am posting this for clarity's sake, as I do not want others to think that what I had advised was no longer allowed per your AI search.