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Author: truthfinder Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Depreciated Roth Date: 1/17/2001 2:07 PM
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In August of 1999 I recieved a sizable amount of cash and decided to set up a Roth IRA as well as contribute to my existing SEP IRA. Of course that was when the market peaked for the year. My $2000 Roth is now valued at $1600.

I have heard there are options to "redo" the Roth, where the original investment is somehow nulled and a new investment may be made. Is this true? If so, is it a wise thing to do?

rob
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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27272 of 75340
Subject: Re: Depreciated Roth Date: 1/17/2001 8:36 PM
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In August of 1999 I recieved a sizable amount of cash and decided to set up a Roth IRA as well as contribute to my existing SEP IRA. Of course that was when the market peaked for the year. My $2000 Roth is now valued at $1600.

I have heard there are options to "redo" the Roth, where the original investment is somehow nulled and a new investment may be made. Is this true?


Kinda, sorta, not really. The process you refer to is a "recharacterization" of the contribution from Roth to traditional. However, the deadline for doing such for a 1999 contribution was in 2000. There's nothing you can do about your 1999 contribution now, except plan that the holdings will eventually prove that you were right when you picked them. If you don't think they ever will, dump them and buy something you think will.

TMF ExRO
Phil Marti

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