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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121110  
Subject: Re: Converting to Roth IRA Date: 3/29/2000 11:21 AM
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<< I have already contributed to a conventional IRA for 1999 . I am planning to put $2000 in a Roth IRA for 2000. My question is. Can I convert last year's contribution to a Roth account before I file my 99 taxes? >>

If you want to "recharacterize" the 1999 contribution as a Roth contribution, you have until 10/16/2000 to do so. This is NOT conversion.

You can convert all or a portion of your traditional IRA to Roth in any year that your AGI is under $100,000 and you do not file married, filing separately. Income from the conversion is recognized on your return for the year in which the conversion occurred.

The simplest way of changing your 1999 contribution to Roth would be to recharacterize it and the earnings on it. If you've not yet filed your 1999 return, do not deduct the contribution (if it was deductible) or complete Form 8606 (if it wasn't deductible), and contact your custodian to complete the recharacterization. No reporting on your 1040 would be necessary.

TMF ExRO
Phil Marti
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