Green Financial Group, LLC
Jeff Green
6363 Woodway Dr
Suite 870
Houston TX 77057
713-244-3030
jeff@greenfinancialgrp.com
www.greenfinancialgrp.com
September 30, 2009
Deadline Rapidly Approaching to Recharacterize 2008 Roth Conversions
Did you convert a traditional IRA to a Roth IRA in 2008 only to see your new Roth IRA balance decline
due to market conditions? If so, you may want to consider recharacterizing your conversion. A
recharacterization essentially allows you to undo the conversion and treat it as if it never occurred. But
you must act quickly--the deadline for recharacterizing 2008 conversions is October 15, 2009.
Why would you want to recharacterize your conversion? When you convert a traditional IRA to a Roth IRA, you're
taxed as if you received a distribution on the conversion date. But if your Roth IRA has suffered a significant loss
since the conversion, you wind up paying tax on assets that no longer exist. A recharacterization lets you undo the
conversion, and may result in significant tax savings.
You would also want to recharacterize if you converted a traditional IRA to a Roth in 2008 and then found you
weren't eligible to convert because your 2008 income exceeded the $100,000 limit that applies to conversions
before 2010.
If you recharacterize your Roth 2008 conversion in 2009, you'll be able to reconvert your traditional IRA to a Roth
after waiting at least 30 days following the date of the recharacterization. In addition, if you reconvert in 2010,
you'll be eligible for a special rule that allows you to report half of the resulting income on your 2011 tax return, and
the other half on your 2012 tax return.
Example(s): Mary converted a $100,000 traditional IRA to a Roth IRA in June 2008. She filed for a federal income tax extension, giving her
until October 15, 2009, to file her 2008 federal return. But Mary's IRA is currently worth only $60,000--it has lost 40 percent of its value since
the conversion. Nevertheless, Mary must pay income taxes based on the conversion date value of $100,000. She has until October 15,
2009, to recharacterize her conversion, and avoid paying federal income taxes on the $100,000. (If Mary has already filed her 2008 income
tax return and paid the taxes on a timely basis, she can file an amended return for a refund, as long as she recharacterizes the conversion
by October 15.) Mary can again convert her traditional IRA to a Roth IRA after waiting 30 days from the date of the recharacterization.

To recharacterize a 2008 conversion, you need to carefully follow specific IRS rules. Your financial professional
can help you determine if a recharacterization, or reconversion, is right for you, and help guide you through the
procedural requirements.
This information, developed by an independent third party, has been obtained from sources considered to be reliable, but
Raymond James Financial Services, Inc. does not guarantee that the foregoing material is accurate or complete. This
information is not a complete summary or statement of all available data necessary for making an investment decision and
does not constitute a recommendation. The information contained in this report does not purport to be a complete
description of the securities, markets, or developments referred to in this material. This information is not intended as a
solicitation or an offer to buy or sell any security referred to herein. Investments mentioned may not be suitable for all
investors. The material is general in nature. Past performance may not be indicative of future results. Raymond James
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Prepared by Forefield Inc. Copyright © 2009 Forefield Inc.