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I contributed $2000 to Roth IRA and converted Stock A from Rollover IRA to Roth IRA last year. Until recently I found out I had to recharacterize due to married filing separately status. The tricky part is, I sold some shares of Stock A and used the sales proceeding plus some cash available in Roth IRA to buyt Stock B. I am puzzled:"what should I recharacterize?"

Your custodian should be able to calculate the amount to be recharacterized, using IRS instructions and a Ouija Board. All you need to tell them is what order you want them to use the assets in the Roth. (I'm assuming here that less than the entire Roth must be recharacterized.)

Let's back up a second to that Married, Filing Separately status. Do you have any way around this? It's usually an awful filing status, and not only because of the Roth restrictions.

Phil Marti
VITA Volunteer
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