The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/roth-conversion-12021445.aspx

Subject:  Roth Conversion Date:  2/21/2000  1:09 PM
Author:  HardlyRich Number:  29477 of 121482

Forgive me if this has already been posted and answered. I did a search but didn't really have an answer.

In 1998 I started a new Roth IRA (no conversion), and deposited my $2000. In January 1999, I made another $2000 contribution for the year 1999.

When filing my taxes in 1999 for 1998 I realized I exceeded the max AGI for a Roth. On April 1, 1999 the entire balance was recharacterized to a regular IRA. I filed form 8606 with my 1998 taxes for the $2000 contributed to the Roth in 1998.

In January 2000, I received a 1999 1099-R for the entire amount of the Roth recharacterization. The sum includes my 1998 and 1999 contributions and gains.

Now I'm not sure how to handle this 1099-R in my taxes. How do I report this gross distribution when part of it was for 1998 and part in 1999? Remember, I recharacterized prior to April 15, 1999. Do I simply ignore this 1099-R and report a regular IRA contrinution of $2000 for 1999?

Any help is appreaciated.

-HardlyRich
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us