TaxEsqBlog -by Ronald J. Cappuccio, J.D., LL.M.(Tax)

I f you converted a traditional IRA  into a Roth account last year and are now unhappy with the results, you can reverse the conversion as long as you get it done by October 15. Here's what you need to know as this deadline rapidly approaches. Reversal Basics When you converted your traditional IRA into a Roth IRA last year, the transaction was treated as a distribution from the traditional IRA followed by a contribution of the distributed amount to the Roth account. So the conversion triggered a 2012 federal income tax bill (and maybe a state income tax bill, too) based on the traditional IRA's value on the conversion date.  Please see further details here . Before you make this decision, call your tax lawyer! Ronald J. Cappuccio, J.D., LL,M.(Tax) Counsellor at Law www.TaxEsq.com 856 665-2121

Roth IRA Rollovers For the past few years, plans with designated Roth accounts could allow an individual to roll over an amount from a non-Roth account into the individual’s designated Roth account in the same plan, but only amounts the individual could have had distributed from the plan, usually because the individual had attained age 59½ or had severed from employment, according to the IRS. Beginning in 2013, The American Taxpayer Relief Act of 2012, or ATRA, allows a 401(k) plan can permit this type of rollover for an amount that is not eligible for distribution at the time of the rollover, such as an amount in an individual’s regular (pre-tax) elective deferral account when the individual is not eligible for a distribution from that account. A similar expansion applies to 403(b) plans and governmental 457(b) plans. The amendment to the in-plan Roth rollover rules was made by ATRA. The IRS said it anticipates issuing guidance later this year about the expanded in-plan Roth rollover...