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I converted part of an old TradIRA in Mar07 to a RothIRA.
It lost value by Dec07
I recharacterized the full amount of remaining value back to my TradIRA in Dec07

I received 2 1099R. One for the TradIRA, One for the RothIRA.

For the TradIRA 1099R, box 1 and 2 were both the full amount of the original conversion. Box 2 is taxable amount. I expected this to be $0. My broker suggested I will receive two form 5498 after May31,2008 and this should show the recharacterization and "cancel out" the 1099R. Does that make sense? I fear the IRS will expect an entry on line 15a of 1040 and taxes due on the conversion amount based on 1099R.

The 2nd 1099R for the Roth had $0 for box2.


I'd like to file before May 31. Does anyone know if box 2 (taxable amount) on my 1099R should be 0?


Does anyone know what forms/lines I should fill out to make my situation clear on my tax return? I fear just leaving 15a blank might cause problems.

Any insights will be appreciated. thanks,
fate
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Does anyone know what forms/lines I should fill out to make my situation clear on my tax return?

See the instructions for Form 8606. The numbers on the 1099-R's are fine.

Phil
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Thank you Phil. I just ran things through TaxCut software and it did everything as I hoped ($0 in 15b form 1040)and even pointed me to form 8606.

I appreciate you always sharing your knowledge so freely and quickly,
Fate
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