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Author: kathw Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76078  
Subject: Roth Recharacterization Deadline Date: 10/23/2001 3:42 PM
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To recharacterize a Jan,2001 Roth conversion, you stated the deadline date is Oct.15,2002, and the earliest date to convert back to Roth is
Jan,2002.
Q1: Did you intend to state deadline to recharacterize is Oct.15,2001?
Q2: Why Oct.15th? I missed the deadline. Is there nothing I can do to recharacterize now?
Q3: Part of my regular IRA was from taxed contributions. When I converted to Roth, can I deduct this amount from my taxable balance?

Thanks very much for your help.
kathw
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Author: jrr7 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32309 of 76078
Subject: Re: Roth Recharacterization Deadline Date: 10/23/2001 3:50 PM
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Q1. No, the deadline to recharacterize is october of the year you filed the tax return documenting the conversion. (You're really just amending your tax return.) Since you converted in January, you won't file your tax return until April 2002, which means you have until 10/15/2002 to recharacterize.
Q2. Oct 15 = April 15 + 6 month extension
Q3. Yes, you only pay taxes on your taxable basis.

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Author: WPatch Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32311 of 76078
Subject: Re: Roth Recharacterization Deadline Date: 10/23/2001 5:05 PM
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Hello kathw

To recharacterize a Jan,2001 Roth conversion, you stated the deadline date is Oct.15,2002, and the earliest date to convert back to Roth is
Jan,2002.
Q1: Did you intend to state deadline to recharacterize is Oct.15,2001?
Q2: Why Oct.15th? I missed the deadline. Is there nothing I can do to recharacterize now?
Q3: Part of my regular IRA was from taxed contributions. When I converted to Roth, can I deduct this amount from my taxable balance?


Q1: The deadline was correctly stated as Oct. 15, 2002. Jan 2001 conversion due create 2001 income.

Q2: You have almost 12 months left to rechatorize 2001 deductions. Oct. 15, 2002 was set because it is the due date for individual tax returns with 2 extensions for 2001 returns.

Q3: These dedustions are made on Form 8606 on your 2001 return.



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Author: kathw Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32351 of 76078
Subject: Re: Roth Recharacterization Deadline Date: 10/26/2001 2:31 PM
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Thanks for clarifying Oct.2002 recharacterization deadline for Jan.2001 convert. Using the same scenario (I converted to Roth on Jan.16,2001),
Q1: What is the EARLIEST date I could recharacterize to standard IRA?
Q2: What is the EARLIEST date I could then re-convert back to Roth?

From earlier discussion, I surmised that earliest date to re-convert back to Roth is one year since original convert <or> 30 days since recharacterization, whichever is latest. Therefore, couldn't I recharacterize on Dec.16,2001 and then re-convert on Jan.16,2002?

Thank you again for your help.


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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32355 of 76078
Subject: Re: Roth Recharacterization Deadline Date: 10/26/2001 3:16 PM
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Kathw asks:

Q1: What is the EARLIEST date I could recharacterize to standard IRA?

As soon as you may arrange it with your Roth provider.

Q2: What is the EARLIEST date I could then re-convert back to Roth?

The later of the beginning of the next tax year (January 1, 2002 in your case) or 30 days after the recharacterization. If you get the recharacterization done by November 30, 2001, then you may reconvert no earlier than January 1, 2002. If you wait until December 10, 2001, to get the recharacterization done, then you must wait until at least 30 days goes by to reconvert, or until January January 11, 2002.

For details, see IRS Publication 590 )Individual Retirement Arrangements) available for download at http://www.irs.ustreas.gov/forms_pubs/pubs.html. TMF Taxes also wrote a good piece on the topic at http://www.fool.com/taxes/2000/taxes000218.htm

Regards..Pixy



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Author: kathw Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32356 of 76078
Subject: Re: Roth Recharacterization Deadline Date: 10/26/2001 3:20 PM
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Perfect.
Thanks for your help!


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