calculation
Frank/Temp will do the calculation on a recharacterization, but i wanted to see if i did it right using your formula?
[u]Example only[/u]:
value on day of conv = $10,111.04
value on 12-3-08 (example if done on this date) = $6714.24
the loss is $3396.80,which comes to a percentage of 33.6%
you take the 33.6% off of the $4000,which comes to $1344
$1344 – $4000 = the recharacter amount of $2656?
yes/no
Thanks,
Doug
Permalink Submitted by Alan Spross on Mon, 2008-12-08 19:01
Your numbers are correct, providing certain assumptions:
1) You converted 4,000 into an existing Roth account that had a value of 6,111 excluding the conversion (total with conversion 10,111 as opening balance.
2) No other contributions or distributions made between the conversion and the recharacterization
3) You are doing a total recharacterization of the 4,000 conversion.
These numbers would also be correct if you originally converted 10,111 and now which to recharacterize 4,000 of that, in other words a partial recharacterization.
The numbers would also fit a conversion between 4,000 and 10,111 into an existing account and recharacterization of 4,000 of that conversion.
This boils down to being sure that both your opening balance and closing balance were correctly figured. If they were, your number is right, but if not, then the number is wrong………
Permalink Submitted by [email protected] on Tue, 2008-12-09 17:07
Thank you very much