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<< As I prepare my taxes, I realize that my contribution for 1999 is not allowed! What do I do, since I have to withdraw the original 2000 + earnings. How do I divide it up? >>

A better bet would be to recharacterize the 1999 contribution and the earnings on it as a traditional IRA contribution. Your custodian has the forms and, even better, the formula for figuring the earnings.

Down the road, if your AGI allows, you can convert the traditional IRA to Roth. In the meantime, recharacterization, as opposed to withdrawing the contribution and earnings, leaves the money under an IRA umbrella. Once you remove it, you can never get it back in.

Phil Marti
Tax Preparer
(Posted and e-mailed0

P.S. Don't rely on e-mail for responses. It's easy to go back and check for responses. If you don't know how, e-mail me and I'll be glad to tell you.

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