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Subject:  Re: Dumping the '4-year spread' ? Date:  4/11/1999  2:31 PM
Author:  mkraft Number:  9862 of 88498

<<< The recharacterization must be complete by your filing due date with extensions. That's definitely a deadline. >>>

By 'deadline' I was referring to the custodian deadlines you had referred to -- i.e., that I had not read or otherwise heard of any.

Anyway, I can't see why such deadlines would be imposed (other than perhaps requiring them to be requested before April 15 itself). Though I don't know what recharacterization involves, unless you're trying to split up individual securities (between trad. IRA and ROTH) it would seem to me to be little more than a journal transfer (by the brokerages, etc.). After all, the custodians aren't the ones who have to recompute anything -- I am.

In any event, since a filing extension also extends the recharacterization deadline, that should solve the problem if I do end up getting any flak from the brokerage.

<<< income in 1998 or spread it equally over the years 1998, 1999, 2000, and 2001. "The election is made on Form 8606 and cannot be made or changed after the due date (including extensions) for filing the 1998 Federal income tax return." (Source: Federal Register Vol. 63, No. 171, 26 CFR >>>

The quoted section states that the *election* (to take the 4-yr. spread or not) can't be changed. It doesn't specifically say that any adjustments to the amounts subject to the '4-year spread' can't be made.

However, in the absence of anything stating that such modifications *can* be made, I'll assume they can't be.

Thanks for your reply.

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