Prior to enactment of the Tax Cuts and Jobs Act (TCJA), a taxpayer could convert a traditional IRA into a Roth IRA, pay tax on the conversion, and then later decide to reconvert the Roth IRA back into a traditional IRA. Recharacterizations were permitted for trustee-to-trustee transfers through the extended due date, including extensions, of the taxpayer’s tax return, among other requirements. Under the TCJA, the reconversion of a Roth IRA back into a traditional IRA is no longer permitted. The IRS has clarified in a Frequently Asked Question (FAQ) posted to the IRS website that reconversions back into a traditional IRA will be permitted through October 15, 2018. A Roth IRA conversion made on or after January 1, 2018 cannot be recharacterized. See www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-recharacterization-of-roth-rollovers-and-conversions
