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I would very much appreciate direction on how to keep this real simple, if possible.

She tells the custodian to recharacterize the amount of excess taxable income she's currently showing plus/minus the earnings on it. That's all she has to do unless she also has to tell them what to move to her traditional IRA.

It's all reported on her 2009 return per the instructions for Form 8606. There will be no 2009 1099-R for the recharacterization, just for the conversion. She'll get a 2010 1099-R for the recharacterization which, if it's properly coded, she'll ignore on her 2010 return.

Rule Your Retirement Home Fool
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