It’s well known that the current tax reform legislation making its way through Congress can, and most likely will, impact your retirement accounts and plans. One target is regarding recharacterizations of Roth IRA and traditional IRAs, which both the House and Senate bills would do away with. Recharacterizations are important because it is one of the few tools available to correct a conversion. Under the current system, you have until October 15 of the year following the year in which you made the conversion to recharacterize it. This current system gives people time to reconsider and think about conversions and take steps to fix it. However, if that is done away with, people may be much more cautious with conversions. Furthermore, if these proposed bills are signed into law before the end of the year, the elimination of the ability to recharacterize a conversion most likely will happen sooner rather than later. Therefore, if you have been thinking about recharacterizing a conversion you made in 2017, you may want to do so before the end of the year or in the early part of 2018.