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Financial Planning / Tax Strategies
|Subject: Re: Non-deductible IRA Contribution 1999||Date: 2/27/2000 2:59 PM|
|Author: pmarti||Number: 30198 of 122998|
<< I made a contribution to a non-deductible IRA for 1999. I wish to change this contribution to a Roth IRA.
I do not currently have a Roth IRA account established. Note: my income for 1998 was above the $160K (married filing jointly) income threshold for Roth-IRA contributions/conversions. Consequently, I was not able to participate in the Roth-IRA benefits. >>
Please note that the phaseout for Roth contributions begins at $150K for a joint return.
<< Now, realizing I do not exceed income limits I believe I can simply establish a Roth IRA account since my income for 1999 will be below $160K threshold. >>
See note above. Assuming that you can, you want to "recharacterize" the 1999 traditional contribution and its earnings to a Roth contribution. Your custodian has a form, and you'll have to do the paperwork to establish a Roth.
<< I shall also be contributing $2000/$2000 for both my wife and myself (in separate Roth-IRA accounts) for year 2000 with the intent of not exceeding income limits. If I do exceed limits for year 2000, can I transfer this specific contributions to my non-deductible IRA account at a later date (i.e before April 15th, 2001)? >>
Actually, until 10/15/2001. It's the same process you're using for 1999, except in reverse.
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