missed recharacterization deadline of 10/15.
My client asked me to put $5,000 x 2 into their IRA s earlier this yr. as they have been funding their Roths for a while now. The accountant took the $10,000 deduction off their taxes. When I saw what had happened I tried to recharact. this but didn’t realize the deadline was 10/15. My back office says it can not do anything about this error now.
Anything we can do?
the $10,000 was put into their RIRAs by me. (Client didn’t inform me they were supp’d to go into TIRAs and Deducteded from their taxes (he was self -employed in 2007 and needed the deduction! Income was TOO high to do RIRAs
Permalink Submitted by Alan Spross on Mon, 2008-12-22 19:06
Roger,
Need more info. I assume each spouse contributed 5,000 early in 2008 but for the 2007 tax year. Were these actually made to a Roth IRA or to a TIRA, but they cannot deduct the TIRA? If to a Roth, is their income low enough to qualify?
In other words, we are trying to determine first if there is an excess contribution that must be corrected as well as if an amended 2007 return is needed.