The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: IRA Recharacterization/Distribution?||Date: 2/4/2013 8:12 AM|
|Author: hk2||Number: 117614 of 122648|
Late last year I mistakenly made a deposit to a regular IRA instead of my Roth.
I conducted a recharacterization and the money was moved from the regular IRA to the Roth..
I received a 1099-R for a distribution of those funds from the regular IRA.
Is this to be expected?
If so, how do I account for this on my tax forms? I hate to think that I'd have to pay tax on this, especially since the initial deposit was from after tax funds.
Do I claim the initial deposit and the distribution so that the tax issue is a wash?
What about the early withdrawal penalty?
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