The Money Mustache Community
Learning, Sharing, and Teaching => Taxes => Topic started by: swampwiz on May 15, 2018, 05:19:46 PM
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I read up on stuff all the time, especially financial stuff ... but I have just learned that this new "tax reform" law now disallows recharacterizations of Roth conversions starting in 2018. I originally did a conversion for a certain amount early in the year, and did another one just a few days ago, expecting to partially recharacterize the other one (they were in different accounts).
I AM SO PISSED!
I suppose that since I signed the form for the recent conversion, there is no way for me to say that that was a mistake. I would have no problem just undoing that one.
I AM SO PISSED!
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It was kind of a big deal at the time they passed the law.
I highly suggest that after such a major change everyone recheck their tax strategies
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Greetings
Sorry this impacted you - as others said closing this cheathole/loophole was very loudly communicated and multiple times.
Besides, wasnt this cheating to begin with? Look up 'IRA horse race' - people giving advice on deliberately converting more than allowed amount (so already very questionable from the first intent), putting into different instruments and then at the end of the year undoing one of the conversions by having a time machine to cheat the system. I do not see how this is in any way defensible (yes, it was legal).
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But yet it's not a "loophole" when Mitt Rmoney did it to get a whopping $125M in his Roth? This was a benefit for the little guy; now only the big dogs can take advantage of it.
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But yet it's not a "loophole" when Mitt Rmoney did it to get a whopping $125M in his Roth?
Nobody said that.
This was a benefit for the little guy; now only the big dogs can take advantage of it.
What makes you think it was "for the little guy"?
Or that "big dogs" can now continue to take advantage of it, even though it's been disallowed?