UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Re: ROTH Conversion Date: 1/31/2000 2:48 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Greetings, Jonpr, and welcome. You asked:

<<Last year we funded a traditional IRA for my wife with the full $2K. It turns out that when she worked as a temporary employee during the summer at a school, they held out 3% for a pension plan. Needless to say, we lost our $2K deduction.

My question is this. If we convert the traditional IRA to a ROTH IRA now (Feb. 2000) can she still make a $2000.00 contribution to her original IRA this year?>>

Yes, you can. Further, you may handle the issue of last year's contribution very simply and without incurring any income taxes on the earnings since that contribution. Simply contact your IRA provider and tell that agency you wish to recharacterize the original contribution as one made to a Roth IRA instead of one made to a traditional IRA. Tell them you wish the whole account as it now exists to be redesignated as a Roth IRA, and then follow their instructions for completing that action. As long as you do that by April 17, 2000, you will have no problem. And you may make a contribution to that IRA for this year as well. For details on recharacterization, see IRS Publication 590 (Individual Retirement Arrangements) available at http://www.fool.com/money/allaboutiras/allaboutiras.htm.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.