Message Font: Serif | Sans-Serif
No. of Recommendations: 0
In September of 1999, I had a traditional IRA and a Roth IRA. I decided to convert the $1711 from IRA into Roth IRA. Of course, my AGI went over $100,000 and now I must recharacterize (I like to call it de-rothing).

My question is, I am using MacIntax software, and on the Mass return, it is recording the $1711 distribution as income. Do I still have to pay taxes on this as a distribution even though I am having it recharacterized? Can I ignore the 1099-R from this distribution or do I enter it and pay taxes? If so, do I get to deduct next year?

Also, my tax software wants to know the total value of the account as of December 31, 1999. Since I already had valid ROth Ira money in this Roth account, that value would be inflated as far as what the traditional IRA would be worth had it not been converted at all.


Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.