Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (2) | 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 121061  
Subject: Re: Non-deductible IRA Contribution 1999 Date: 2/27/2000 2:59 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
<< I made a contribution to a non-deductible IRA for 1999. I wish to change this contribution to a Roth IRA.

I do not currently have a Roth IRA account established. Note: my income for 1998 was above the $160K (married filing jointly) income threshold for Roth-IRA contributions/conversions. Consequently, I was not able to participate in the Roth-IRA benefits. >>

Please note that the phaseout for Roth contributions begins at $150K for a joint return.

<< Now, realizing I do not exceed income limits I believe I can simply establish a Roth IRA account since my income for 1999 will be below $160K threshold. >>

See note above. Assuming that you can, you want to "recharacterize" the 1999 traditional contribution and its earnings to a Roth contribution. Your custodian has a form, and you'll have to do the paperwork to establish a Roth.

<< I shall also be contributing $2000/$2000 for both my wife and myself (in separate Roth-IRA accounts) for year 2000 with the intent of not exceeding income limits. If I do exceed limits for year 2000, can I transfer this specific contributions to my non-deductible IRA account at a later date (i.e before April 15th, 2001)? >>

Actually, until 10/15/2001. It's the same process you're using for 1999, except in reverse.

Phil Marti
Tax Preparer
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | 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.
Post of the Day:
Macro Economics

Intel's Broadwell Potential
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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.