Thanks Sarah. It makes sense, but I'm also concerned about reconversion limits. Can anyone make sense of the IRS rules regarding reconversion in Pub 590? i.e. http://www.irs.gov/publications/p590/ch ... 1000230678
Taken from this publication...Reconversions
You cannot convert and reconvert an amount during the same tax year or, if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed conversion. Example
If you convert an amount from a traditional IRA to a Roth IRA and then transfer that amount back to a traditional IRA in a recharacterization in the same year, you may not reconvert that amount from the traditional IRA to a Roth IRA before:
• The beginning of the year following the year in which the amount was converted to a Roth IRA or, if later,
• The end of the 30-day period beginning on the day on which you transfer the amount from the Roth IRA back to a traditional IRA in a recharacterization.