I converted a traditional IRA to a Roth IRA last year and then realized that my income exceeded the allowable limits. Can I reverse it?

Yes. You can undo the conversion by moving the money -- and all earnings because it went into the Roth -- back to a traditional IRA.

Check with your IRA sponsor; you may be able to simply sign a form requesting that the account be "recharacterized" as a traditional IRA. You have until October 15 to accomplish this, but it makes a lot of sense to do it before you file your return for 2006. Otherwise, you'll have to report and pay tax on the converted amount, and then file an amended return to get your money back after you switch back.

Good news: Starting in 2010, the $100,000 income limit on conversions disappears. You'll be able to convert in 2010 and later years no matter how high your income.

MORE: Kiplinger.com | Kiplinger Tax Center | Ask the Experts

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