Phil (or other pros),As I feared, my wife and I are in the same boat, so let me get this absolutely clear.Even though we have maxed out our contributions to retirement plans, we can still take the portion of our Roth contribution (we each put $2000 in Roth in March 2000) that exceeds our allowed amount (plus the interest on it) and recharacterize it as a non-deductible traditional IRA with no tax consequence. The only difference would be, we will eventually have to pay taxes on the interest or gains, while in Roth there would be no taxes. Correct?By the way, based on the number of inquiries on this topic, the idea of encouraging people to contribute to Roth IRAs a year before they know exactly how much they have earned is pretty stupid, even by tax law standards.
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