Recharacterization of IRA Contribution into a Roth IRA

Feb 05, 2007 2 Replies

On 01/12/2007 I made a maximum allowed contribution to my wife's traditional IRA for 2006. When I received her 2006 W2 (she had a part time job that grossed appox 8000 in 2006) found she was covered by a retirement plan at work (although she did not contributed) and with a 130K AGI (married filling jointly), the 2006 traditional IRA contribution will not be deductible. According with pub 590 we are allowed to contribute to a Roth IRA (married filling jointly, AGI less than 150K), so, I plan to do a recharacterization to a Roth IRA, same-trustee transfer, before the filling deadline. Two questions: a) IRA to Roth conversion is not allowed for AGI > 110 K. Is this applied to recharacterization too? b) According with form 8606 instructions, recharacterization (for the same year) before the filling deadline need not to be reported, however, according to the same "....you have to report it into a statement attached to the return" - since I fill my return electronically, how do I "attach the statement". ? Thanks for help.... Drake



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No

You can file electronically, but not paperless. Attach the statement to the electronic filing declaration and mail it.

-- Phil Marti Clarksburg, MD

What tax program are you using?

The activity will generate a 1099-R.

TaxAct is the only program I know about. When you fill in the fields for the 1099-R, scroll down and you find some more questions and check boxes that may be accomplishing the same thing. Carl

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