You Have 7 Days Left to Consider This Winning Roth IRA Move

Converting money from a traditional IRA to a Roth IRA helps many taxpayers lock in low tax rates at auspicious times and enjoy unlimited tax-free growth for decades into the future. Yet an arguably even bigger benefit from a Roth conversion is that you can get a do-over if it doesn't go as well as you had hoped. By using Roth IRA recharacterization, you can undo a previous Roth IRA conversion if it makes sense to do so. In some cases, that can help you save a huge amount in taxes. However, the clock is ticking on recharacterizing Roth conversions from the 2016 tax year, and you only have a few days left to take advantage of the strategy.

Having gone to so much trouble to do a Roth conversion, you might wonder when you'd ever want to undo all that hard work through a recharacterization. There are several situations in which recharacterizing your Roth conversion makes sense.

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Source: Fool.com