|
Texas & western Iowa | No personal experience with this, but my understanding is that people often use/need a recharacterization when attempting to maximize their tax efficiency. Probably people with large traditional IRAs trying to lower their RMDs before they reach retirement.
They'll estimate a conversion of traditional to Roth up to a particular tax bracket. Say 15%. If they overshoot, they can recharacterize the excess back to traditional within a particular amount of time, and avoid the much larger tax hit on the excess.
I haven't heard why it was repealed. Maybe just the complexity of it all.
Edited by PRNDL 1/30/2019 23:04
| |
|