I converted some IRA to Roth in 12/98. Now, I found I can't because of the $100K MAGI limit; and have to recharacterize it back to IRA.Do I have to wait for the 1099R for the recharacterization before I file my tax return? If no, will I be getting a routine letter from IRS saying that my numbers don't jive with the 1099Rs ??TIA
I think you've got until April 15 to recharacterize. Just send the trustee a letter.
[[I converted some IRA to Roth in 12/98. Now, I found I can't because of the $100K MAGI limit; and have to recharacterize it back to IRA.]]Correct....[[ Do I have to wait for the 1099R for the recharacterization before I file my tax return? ]]No...but you will really want the 1099R for the original conversion. You'll have to report that information on Form 8606. But the 1099 for the recharacterization has no real meaning to you for tax year 1998.[[If no, will I be getting a routine letter from IRS saying that my numbers don't jive with the 1099Rs ??]]No...because you'll complete Form 8606 to make the numbers match with the information that Uncle Sammy has on the original conversion.You can read more about conversions in the Taxes FAQ area.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.
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