For those of you who converted a Traditional IRA into a Roth IRA during 2008 consider recharacterization. When you converted from the Traditional to the Roth you created a taxable event based on the value of the IRA. With the recent decline in the markets most accounts are worth far less today than when the conversion was done. Take advantage of this and turn it into a positive! You can recharacterize the conversion, basically turn it back into a Traditional IRA and not pay tax on value that has been lost. Really wanted a Roth? No problem, just convert the account again at the lower value and benefit even more. You have time - it just must be done by the due date of your 2008 income tax return. If you have questions contact us!
MB Tax Professionals, LLP
503.595.5890
2580 NW Upshur Street
Portland,OR 97210
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