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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 120807  
Subject: Re: Roth Conversion Date: 2/21/2000 2:27 PM
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<< In 1998 I started a new Roth IRA (no conversion), and deposited my $2000. In January 1999, I made another $2000 contribution for the year 1999.

When filing my taxes in 1999 for 1998 I realized I exceeded the max AGI for a Roth. On April 1, 1999 the entire balance was recharacterized to a regular IRA. I filed form 8606 with my 1998 taxes for the $2000 contributed to the Roth in 1998.

In January 2000, I received a 1999 1099-R for the entire amount of the Roth recharacterization. The sum includes my 1998 and 1999 contributions and gains.

Now I'm not sure how to handle this 1099-R in my taxes. How do I report this gross distribution when part of it was for 1998 and part in 1999? Remember, I recharacterized prior to April 15, 1999. Do I simply ignore this 1099-R and report a regular IRA contrinution of $2000 for 1999? >>

First the really important part, with reference to Form 1040 line numbers. On 15a, put the gross amount from the 1099-R; on 15b, put -0-.

You need to do Form 8606 to report the recharacterization of your 1999 contribution, just like you did for your 1998 contribution on your 1998 return. Read the instructions carefully. This may be one of those situations where you attach an explanation.

Phil Marti
Tax Preparer
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