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Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75820  
Subject: Re: Rechar of Roth 'conversion' v. 'contribution Date: 10/13/1999 1:29 AM
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mkraft writes (in part):

Is there any reason to decide to recharacterize a Roth 'conversion' but *not* a Roth 'contribution'?

I reply:

I can think of at least two scenarios where this makes sense. First, the income of taxpayers who are married filing jointly may have unexpectedly exceeded the $100,000 limit for conversions while remaining below the $150,000 start of the phase-our range for contributions. Second, the contributions may be non-deductible if made to a traditional IRA (in which case the Roth is a no-brainer), while the converted funds (perhaps having begun life in a 401(k)) may trigger a large and unwanted tax liability. --Bob
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