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Author: marisha One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121340  
Subject: how to correct IRA mistakes Date: 3/11/1999 4:46 PM
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Mistake 1. In 97 I made nondeductible contibution to IRA. In the beginning of 98 before filing 97 tax returned I converted it into ROTH. I did not file 8606 in 97. Recently I found out that there is $50 penalty for not filing the form. Now I have to file 8606 for 98 and show my 97 IRA basis. Is there a way to avoid $50 for 97?

Mistake 2. In 98 I made regular IRA contribution (I am eligible to deduct it for this year). Later I changed my mind and decided that I would rather go Roth. My 101K AGI for 98 allowes me to make Roth contribution, but does not allow me to make conversion. I did not file tax return yet. Is there any way out?
If not, I can deduct my regular IRA contribution, so my AGI falls below 100K. In this case can my husband convert his IRA to ROTH? In other words do IRA deductions affect AGI for conversion purpose?

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