[[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.]]Yup...you 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.TMF TaxesRoyWant to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. It'll help you with your 1998 taxes, and it's never to early to start planning for your 1999 taxes. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra