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So I did the Trad/to/Roth IRA conversion in 1998. I spread the distribution over 98, 99, 00, and 2001 Income tax statements.

I would like to reduce the amount allocated for the 2001 tax year by about 50%. (I made no changes during tax years 98, 99, 2000.)

When I did the conversion in 98, it was my understanding that you could change your allocation at any point over the 4 tax years. (Understanding was acquired from The Fool, and Vanguard websites...)

I talked to Vanguard about 2 weeks ago, they said "YES", and directed me to the "Re-characterization" form on their website. I filled out the paperwork today, and called them to check some details. The phone person today, said: "No way", once you've chosen to spread the distribution over the 4 years, you must continue, and can't backtrack.

Which story is correct?


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