At the 2018 University of Miami’s Heckerling Institute, Natalie Choate discussed making a contribution to a traditional IRA and then converting those assets to a Roth IRA (this is an approach to consider if you are over the income limit for a Roth contribution during the year). This is a possible strategy to consider if you are under age 70 ½ and have compensation income. As always, consult with your professional advisor prior to making any such transfer.
Under the Tax Cuts and Jobs Act, if a traditional IRA is converted to a Roth IRA, the taxpayer can no longer decide to undo this conversion by later re-characterizing a Roth IRA back to a traditional IRA.
