Update on Roth Conversions: Great secret tip

Income tax strategies of the Rich: Roth Conversions: As readers of my blogs, you know that I have strongly urged you to consider converting your regular IRAs into Roth IRA in order to get tax free money forever! Here is a twist that I would BET that 99% of you don’t know. You have 21 months after the conversion to recharacterize the transactions. See comment for elaboration on this topic.
Here is the problem: if your roth loses money, you can only take the loss as an itemized deduction,which isn’t that good. If you have a large IRA or SEP, here are the steps you should take: First, divide this into several traditional IRAs. …Step 2 Convert each IRA to a Roth. Step 3. Wait up to 21 months to see how the investments did. Step 4. For the IRA that had its investment drop, recharacterize it so that it won’t be a roth IRA. This way, you will maximize both your gain and losses since losses will result in your not paying tax on lost assets.