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JeffdFool: <<<<Thanks for the reply JAFO,

I did look at both the threads you mentioned and it seems like recharacterizing the 99 contribution as a regular IRA would be a good idea.
The Roth is at TDWaterhouse, they had no idea how to figure the tax due, (because I would still like to keep the 98 portion in the Roth) wouldn't they still need to calculate the 99 portion to recharacterize?
Anyway I getting a recharacterize from TDWaterhouse and I guess it will be up to them to figure it out now.>>>>

Thank you.

I am way out of my element here, but I almost agree with your accountant, I think.

You do not say how youhad your money invested, but I will assume that it was all in one stock. $2000 in 1998 contribution, worth $2349 on 1/14/99 when $2000 was contributed for 1999. With this understanding and assumption, I would split gain since 1/14/99 2349/4349 (roughly 54%) to 1998 portion and 2000/4349 (roughly 46%) to 1999 contribution, FWIW.

If you did not own only one stock, or you made other trades, or anything else has tanspired in the account, then I would want to re-think my view.

Please consult with your advisor and your broker.

Regards, JAFO
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