Partial Roth recharacterization – form 8606
3 traditional Separate IRA accounts and Recharacterized $2,000 in l account.
12/27/13 converted all 3 into 3 separate Roth Conversion accounts.
February 7, 2014 recharacterized $2,000. (made no interest while in Roth)
Is this correct:
8606
Line 6, I “added $2,000 back” into the value of all my Traditional IRA’s. (even though 8606 states it should be the value as of 12/31/13). THIS WILL BE WHAT IS LEFT IN MY TRADITIONAL IRAs.
Line 8 is the amount converted to Roth IRA. (“less $2,000″ recharacterized”)
9. Adding lines 6 & 8 is the value of all 3 traditional IRA’s 12/27/2013.
IS THIS CORRECT HOW TO FILL OUT 8606?
THIS PARTIAL RECHARACTERIZATION (MADE NO INTEREST IN ROTH) IS TREATED AS IF I MADE THE ROTH CONVERSION 12/27/2013 $2,000 LESS, UNDERSTANDING THAT THIS IS DONE BEFORE FILE DATE OF APRIL 15,2014. IS THIS CORRECT?
Permalink Submitted by Alan - IRA critic on Mon, 2014-02-24 16:34
Yes, you are treating this correctly. Remember to include an explanatory statement with your 2013 return which describes the conversion and partial recharacterization, since the 1099R for the recharacterization will not be issued till Jan, 2015.