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Greetings, ppsbs, and welcome. You asked:

In Dec. 2000 I journaled shares of Microsoft, Intel, Oracle, and Scudder Technology from my IRA to my Roth IRA.

I sent the IRS a substantial check to pay the taxes on the transaction in mid January.

Now I see that the shares have lost a substantial amount of value. I really don't want to pay taxes on an inflated value for the shares. I've read that I can undo the Roth IRA conversion, but how can I recover the taxes paid when I already have a 1099R showing a distribution for the December value of the shares converted to the Roth?

That's a forms filing question probably best asked on the Tax Strategies board at You have until October 15, 2001, to undo that conversion and avoid any income taxes thereon. If you do so after you have filed your return, I suppose you will have to file an amended return to claim any tax refund that may be due. If you do so before you file your return, then you would show both the conversion and the recharacterization in Part II of Form 8606. (See IRA Publication 590 (Individual Retirement Arrangements) available for download at In the latter case, there would be no need to file an amended return, but you will have to act fast to get it done by April 16. That, or use an extension for filing.

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