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Well, the currently-being-made contributions, which are to be reported for tax year 2000, haven't been characterized as anything yet. I assume that, when we file our 2000 taxes, we at that point claim it either as deductible or non-deductible contributions?

The possibility still exists, for instance, that he might do more union work this year, thus eliminating any possibility of deducting the current contributions. Or, if we decide to roll this money into a Roth, we will "of course" not deduct the currently-being-made contributions. I guess that was what I meant. If I'm not making sense here, forgive my lack of sleep...

As for the initial $2000 contribution, it was made in April 2000 just before tax time but we put it towards tax year 1999. Thought we were so clever until our tax-preparation software started spitting the word "nondeductible" at us. So yes, thanks to the conscientious software, we did report the $2000 as a non-deductible contribution on the proper form, because the software forced us to do it.

OK, so are we dealing with two different pots of money here - the original $2000 and any earnings from it (which would need to be 'recharacterized') and then the additional $200 contributed in 2000, and any earnings therefrom? What happens to that money?
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