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Financial Planning / Tax Strategies


Subject:  Re: MO Roth/Income Splitting issues Date:  8/5/2005  2:24 PM
Author:  PanemetCircenses Number:  80271 of 132640

Yes, it is flawed. If you convert the Traditional IRA contributions to a Roth IRA, the contribution is not deductible and the conversion is not reported. In other words, it appears on your Federal return exactly as if you made the contribution directly to the Roth IRA. See the instructions for Form 1040, line 15 and Form 8606.

Thank you. This would be deemed a recharacterization then? I figured this was too easy to work.

I have skimmed through the instructions and my understanding is sort of vague. Is it possible to accomplish something similar to what I want through a rollover of IRA assets from previous years' contributions (she has a stockpile of old Traditional IRA contributions and 403(b) contributions that could be used) or would those be deemed to be simply recharacterizations also?

I hope that is clear...

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