Message Font: Serif | Sans-Serif
No. of Recommendations: 0
The story:

My wife quit working in 1997. She worked for two weeks at her previous employer in January 1998. It was for a limited time and assumed that she would be 1099'ed. We found out this January that they put her under a W2 (marked pension plan and deferred) and even contributed $74.00 to here 401K.

In 1998 assuming she was not covered by a pension plan we invested $1600 into her conventional IRA. I find out that I have to file out a form 8606 Nondeductible IRA.

How can I change this so that I am only taxed once on this money?

My wife also has a Roth IRA that was converted from another traditional IRA in 1998. She made no other contributions to any other IRAs in 1998.



Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.