Rechacterization
I am using Tax Act and unable to fill form 8606. I am rechacterizing from a roth ira to a deductible traditional ira. I appreciate any help. I called tax act and they are not able to answer this problem.
I am using Tax Act and unable to fill form 8606. I am rechacterizing from a roth ira to a deductible traditional ira. I appreciate any help. I called tax act and they are not able to answer this problem.
Permalink Submitted by Alan - IRA critic on Wed, 2013-04-10 23:02
If you are recharacterizing a regular Roth contribution as a TIRA contribution and are able to deduct the TIRA contribution, then there is no need to file an 8606.
Permalink Submitted by david carmel on Thu, 2013-04-11 11:26
When I rechacterized I took the whole amount plus the growth amount, about $50, how is that entered or do I wait until it is withdrawn from the ira.
Permalink Submitted by Alan - IRA critic on Thu, 2013-04-11 19:57
You should include an explanatory statement regarding your recharacterization including dates and amount of the Roth contribution, date you recharacterized it to a TIRA and the value when the transfer is made (your contribution plus $50). And you must claim your deduction on line 32 of Form 1040. You can only deduct the amount of the contribution, not the additional $50.
Permalink Submitted by jorge de leon on Mon, 2013-04-15 04:51
I just opened a Roth IRA for 2012 last March 30, 2013 and then realized I need a Traditional IRA for tax purposes. I plan to recharaterize prior to filing my income tax, will there be a fee and penalty involved in doing so? I could not get a clear answwer from Wells Fargo where I opened the account.
Permalink Submitted by jorge de leon on Mon, 2013-04-15 04:52
MOSFET
Permalink Submitted by Alan - IRA critic on Mon, 2013-04-15 17:09
Dupllicate – see other post