UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: Dumping the '4-year spread' ? Date: 4/11/1999 11:02 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Mkraft writes:

<<I hope you're wrong about that. I haven't heard a peep, received anything in the mail or seen any mention at any website of a 'recharacterization' deadline. I'll know Monday.

In any event, I believe a filing extension would also extend the recharacterization deadline. That's my reading of the Form 8086 instructions.>>


The recharacterization must be complete by your filing due date with extensions. That's definitely a deadline. For most folks, the deadline for a recharacterization for 1998 would be April 15, 1999. OTOH, if you request an extension, the deadline for recharacterization would be August 16, 1999, for the first extension, and perhaps October 15, 1999, with a second.

<<However, in my post, I wasn't referring to recharacterizing for '98. I was referring to a change of heart at some point in the future: e.g., in 1999 or 2000 -- i.e.,. any year that's under the '4-year spread' contract.

Is there any flexibility at all for modifying the 'equal amounts' of additional income (based on the ROTH conversion) that have to be added to other regular income for each of the 4 years?>>


Sorry if I misunderstood the question. If at some point in the future you desire to "opt out" of the four-year spread of income, then you will be sadly out of luck. You either have to declare all the income in 1998 or spread it equally over the years 1998, 1999, 2000, and 2001. "The election is made on Form 8606 and cannot be made or changed after the due date (including extensions) for filing the 1998 Federal income tax return." (Source: Federal Register Vol. 63, No. 171, 26 CFR Part 1, Roth IRAs 63 FR 46937) Thus, if you want to opt out of the four-year spread, you must recharacterize or not use it all.

Regards..Pixy
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
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.
Post of the Day:
Berkshire Hathaway

Reestablishing the Middle Class
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Advertisement