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Author: iamco Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121585  
Subject: recharacterization & taxes due Date: 3/27/2000 11:11 PM
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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.

Thanks

Wendy
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