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Subject:  Re: Straightening out my IRA setup mess Date:  2/24/2001  7:19 AM
Author:  TMFPixy Number:  28083 of 78166

Greetings, Dreamseason, and welcome. You asked:

I already filed my 2000 tax return based on the assumption that I would put the max $2000 into a Roth IRA. Since it went into a traditional IRA account and now it's being "converted" to a Roth, will I have to pay taxes on it despite not reporting a Traditional IRA contribution as a deduction? I'm hoping that I can avoid anymore paperwork=headaches.

Go back to Datek and tell that agency you do NOT have to do a conversion. Instead, you should do a recharacterization to reflect the contribution you made initially was meant for a Roth and not a traditional IRA. For details on how to do a recharacterization, see page 42 of IRS Publication 590 (Individ