I've come to rely on alerts and Fool.com doesn't send me any for msgs received. Incredibly, I totally forgot about taxes until this afternoon when I read your msg and right off arranged to have the second conversion recharacterized!Just to be sure here, I am correct in saying that your income was too high for a 2012 Roth contribution and will again be too high for 2013?Correct. Almost right. Since you didn't take a distribution or make a conversion in 2012, leave lines 4 and 5 blank. Otherwise, this is correct.Lines 4 and 5 on Form 8606 are now blank.1. Recharacterize the second conversion and the earnings on it back to traditional. I'll sleep better if you report back that you've done it.Done!2. You may, if you're eligible and so inclined, make your 2013 contribution at your leisure.Yes, I will.Other than that, do nothing until January, . . .Phew.. . .and then only after checking in first with the details of what you want to do.Thank you so much!I cannot for the life of me figure out what's triggering a TurboTax penalty. Without the information about the penalty I asked for last time my best guess is that you've convinced TT that you made an unallowed $5,000 Roth contribution . . .As best I remember, Turbotax kept giving me an error msg saying my income was too high to make a tax deductible contribution and that I would receive a penalty. That was it. Never said what the penalty would be. Never asked further questions. Never recommended I go back and redo something. I gave the two TT fellows, I spoke with, all the figures they asked for and they got the same response when they plugged in the numbers on their computers. That is when I started searching around the Web and came upon the impression that the "penalty" might be from converting just one of two IRAs, when one of them had some earnings which would be taxed each year until it had also been converted. I thought maybe TurboTax recognized a problem but had it mis-recorded it somehow in their system. You must know how appreciative I am to have been directed so patiently and clearly out of such a string of errors. Thank you so very much, again! -IMBonzi
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