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Financial Planning / Tax Strategies
|Subject: Form 8606 problems||Date: 4/14/2001 1:55 AM|
|Author: Trond||Number: 50237 of 122922|
I am having some difficulty in figuring out Form 8606.
My situation: In 2000 I rolled over 100% of a former 401k distribution into a IRA and then converted 100% of that into a Roth. Due to the value going down about 40%, I then recharacterized the full amount to a traditional IRA. At no point in year 2000 did I contribute any money to any IRA.
My major question has to do with part III. It says to complete part III ONLY if I received a Roth IRA distribution or recharacterized 2000 contributions.
Is recharacterization considered to be a distribution? If it is, then when I fill out the numbers from line 17 thru 27, it shows I have a taxable distribution of the recharacterized amount! Or am I just missing something here?
As it is, I have only filled in part II. If anyone out there has filled out 8606 and is in the same position I am, please respond.
Thanks in advance!
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