Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120794  
Subject: Re: Roth IRA Excess Contributions Date: 4/6/2001 2:10 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
I've decided I want to recharacterize my year 2000 and 2001 contributions to a traditional IRA.

What next?

1. Contact your custodian and do the paperwork to recharacterize. They have the formula for determining the earnings, if that's an issue. (I can't remember whether this is going to be your entire Roths or not.)

2. Once the recharacterization is complete, prepare the following forms:

1. A Form 8606 for each of you. In Part III, enter the amount of your year 2000 Roth contribution on line 18b and the same amount as a negative number on line 18c. The rest is math, assuming there were no pre-2000 Roth transactions.

In Part I of Form 8606 show the amount of the Roth contribution on line 1 if the contribution is nondeductible. (See the table on page 8 of Publication 590 to determine deductibility.)

2. Form 1040 with the total year 2000 amount recharacterized (get this from your custodian) in line 15a and zero in 15b. If any traditional IRA recharacterization is deductible, enter it on line 23.

3. Form 1040X. If your resulting traditional IRA contributions aren't deductible, nothing will change between columns A and C. Just put the numbers down, enter your explanation, showing the earnings or loss between contribution and recharacterization, sign it and mail it.

Your deadline for completing the recharacterization is 10/15/2001.

Phil Marti
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Berkshire Hathaway

Reestablishing the Middle Class
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.