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[[Quick question......if you convert your traditional IRA to a Roth then do a
recharacterization (realize tax benefit) then recovert back into a Roth all in 1998,
do you have to indicate the recharacterization on line 14b of the Form 8606.]] sure do. That is the only way to get your total distributions reported on line 14a (which should be overstated) down to your taxable conversion amount on line 16. Line 14b makes that adjustment.

[[ Or
since no recharacterization is still outstanding as a traditional IRA it shows as if
no recharacterization took place, therefore line 14b would be zero.]]

I don't think so...but I'm not sure that I fully understand you question. When you receive all of your Form 1099R's, you'll find that they are MUCH GREATER than your total actual taxable conversion. So if you made a recharacterization, you'll need to complete line 14b in order to make the adjustment.

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