Deadline for Traditional to Roth IRA Conversions is December 31st

If you’ve been considering converting your Traditional IRA into a Roth IRA in 2006, you’ll want to pretty much do it now, as the money has to leave your Traditional IRA by December 31st. Given that Friday is that last business day available, you only have 2 days left! The good news is that you can still undo the conversion up until October 15th of 2007 without penalties from the IRS. There will be extra paperwork and possible broker transfer fees though.

I’ve been putting this off all year to see how our income picture turns out, but I need to get on the ball and make some decisions.

References: IRS Pub 590, Fairmark.

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