Dear Alan et al,

1. Karen made an excess contribution of $2,750 to a Roth IRA in 2017.

2. Karen recharacterized this excess contribution plus earnings ($130 for a total of $2,880) to a Traditional IRA in 2017.

3. Karen made $2,750 of non-deductible contributions to her Traditional IRA for the remainder of 2017 (so that her total contributions were $5,500).

My understanding is that, since we’re in the next calendar year, she can convert this entire balance ($5,630) over to her Roth IRA. Since she has no other Traditional IRAs, her only tax liability will be the growth ($130).

Does this sound right to you?

Thanks in advance.