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Even though you said "convert," I think you're referring to recharacterizing your 2002 contributions as Roth contributions. Some more information would be helpful:

1. How much total are your IRAs worth?

2. Have you made nondeductible contributions to your traditional IRAs? If so, how much?

3. It sounds like you retired in 2002. Can we assume that your income in 2003 will be less than in 2002?

I'm asking these questions because one option you haven't mentioned is to treat the 2002 contributions as deductible traditional contributions then convert to Roth in 2003.

Our total IRAs are worth a good bit but the only amount we are thinking of recharacterizing is the $7000 ($3500each) we put into a traditional IRA the beginning of 2002. We don't want to to recharacterize all our traditional IRAs.

My husband retired in 2002 & I have not worked outside the home in years. We expect our income to be less in 2003.

Tax Cut software tells us that our 2002 traditional IRA contributions will be worth a $280 deduction for my husband and a $3500 deduction for me.

I'm intrigued by the option you referred to above. How does one treat the IRA as a tradional, deductible IRA and then also convert to Roth in 2003? Bingo - maybe the light bulb just went on. Am I confusing or lumping together two separate issues. Hold I held the IRA account in 2002 is a completely separate issue from wanting to recharacterize it in 2003. confused!
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