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My wife and I both had legitimate Roth IRA's from 2007. She made about $9000 in Box #7 on a 1099-MISC. Most of that (about $7600) was deducted for business expenses for her.

Does the entire $9000 count for her Roth Contribution or only what is left after deductions?

My only income was from a fellowship. Total fellowship about $40000 but half in 2007 and half in 2008. I reported the first half of the fellowship in 2007 but had other income so I could contribute to my Roth IRA that year.

So, what I need to do is call the investment company for both my wife and me and re-charactarize the over Roth IRA contributions for 2008 into a traditional IRA. Then I convert it right back into the Roth IRA. This allows me to in a sense have my 2008 Roth contribution indirectly and to still be able to put the $5000 in for 2009 when I earn "real" income according to the IRS.

Can I do this the next day after it is converted to a traditional IRA?

I still have to look up how to report all that but should be able to figure it out.

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