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Author: SM01 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76419  
Subject: Do I Need to Recharacterize My Roth IRA? Date: 3/17/2001 1:44 PM
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My wife converted her traditional IRA into a Roth IRA early in 2000 (AGI<100K). Later that year, we got married and will be filing jointly. Our adjusted gross income for 2000 is now greater than 100K. Does this mean we will have to recharacterize the Roth back to a traditional IRA. Or...can we avoid this since my wife converted BEFORE getting married? Thanks!
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 28485 of 76419
Subject: Re: Do I Need to Recharacterize My Roth IRA? Date: 3/17/2001 4:47 PM
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Greetings, SM01, and welcome. You asked:

My wife converted her traditional IRA into a Roth IRA early in 2000 (AGI<100K). Later that year, we got married and will be filing jointly. Our adjusted gross income for 2000 is now greater than 100K. Does this mean we will have to recharacterize the Roth back to a traditional IRA. Or...can we avoid this since my wife converted BEFORE getting married?

Unfortunately, the fact she converted while she was still single doesn't count. She got married later in the tax-year, and that changed the whole situation. Now she has a failed conversion, so to avoid a problem it must now be recharacterized back to a traditional IRA before October 15, 2001, to avoid the penalty. See IRS Publication 590 (Individual Retirement Arrangements) for details.

Regards..Pixy

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