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I contributed $3000 to my Roth back in March or April, for 2004. How do I recharacterize it, if necessary? It's with ETrade, and I did not put this year's $3K in a separate account; I added it to an existing Roth.

How do I deal with any earnings/losses on the money? Must I recharacterize them as well?

You will have to work with ETrade. You will have to transfer some (or all) of your Roth contribution to a traditional non-deductible IRA. You will have to calculate how much earnings/loss are attached to the amount you are recharacterizing and move that amount as well.

*possibly related question: I could probably easily offset another $3000 of income with capital losses, either short- or long-term. Which do I use to offset regular income? If I have both long-term and short-term losses, but no gains to offset those losses (because of course I prefer to hold my winners), what do I do with the losses that cannot be used to offset regular income?

Any excess losses beyond the $3000 you can deduct against regular income will be carried forward to future years. You will be able to offset $3000 of net losses each year until all of your losses are used.


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