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I studied http://www.fool.com/taxes/2000/taxes000218.htm where it discussed Example #1.

In this example, the person expected to be under the AGI limitation, but it turned out he was not at the end of the year.

Two questions:

1. The article says "2. Or... he can transfer the ENTIRE balance of this Roth IRA to a traditional IRA." Does ENTIRE mean the $2000 for the current year or the balance since inception (which could be several years)?

2. For tax year 2000, is the AGI limitation for joint filers still $150,000?

Thank you.
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<< 1. The article says "2. Or... he can transfer the ENTIRE balance of this Roth IRA to a traditional IRA." Does ENTIRE mean the $2000 for the current year or the balance since inception (which could be several years)? >>

Example 1 in the article you linked does say that. Roy was no doubt working under the [unstated] assumption that the account was new in 1999, and the 1999 contribution was the only one. All that must be recharacterized is the unallowable contribution and the earnings on it.

<< 2. For tax year 2000, is the AGI limitation for joint filers still $150,000? >>

It's a phaseout beginning at a modified AGI of $150K and ending at $160K.

Phil Marti
Tax Preparer
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<<<< 1. The article says "2. Or... he can transfer the ENTIRE balance of this Roth IRA to a traditional IRA." Does ENTIRE mean the $2000 for the current year or the balance since inception (which could be several years)? >>

Example 1 in the article you linked does say that. Roy was no doubt working under the [unstated] assumption that the account was new in 1999, and the 1999 contribution was the only one. All that must be recharacterized is the unallowable contribution and the earnings on it.>>

Exactly correct. Thanks for the clarification, Phil. There has been some general confusion on this issue (my e-mail box is full with similar questions). I guess I should have made it much clearer. Time for a re-write, I guess.

TMF Taxes
Roy

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