Converting partial Roth to non deductible traditional Ira

Submitted by Barry Friedman on Mon, 2014-06-30 09:22

I filed my 2013 tax return filed separate, not realizing till now when married filing separate you can’t contribute to a Roth Ira
If you make over 10,000, I want to take the 6500.00 I contributed in 2013 and the 3100.00 I contributed in 2014
And recharaterize it as a tradional Ira non deductible
I know I have to fill out a form 8606
Do I have to amend the 2013 return
And is there any thing else I need to do
Thanks barry



Submitted by Alan - IRA critic on Mon, 2014-06-30 15:25

  • You can ask your Roth custodian to recharacterize both your 2013 and 2014 Roth contributions as TIRA contributions. These are separate recharacterizations but can be done at the same time. You can file the 2013 8606 by itself, but you are less likely to receive an IRS inquiry if you use a 1040X and include in the space provided an explanation of what you did – date and amount of the original Roth contribution and date and amount of the recharacterization and what the contribution was worth on the date you recharacterized it. You can then include the 8606 with the 1040X. This should not be too difficult because the numbers on the 1040X will not change otherwise. And when you file the 2014 return you will also include an 8606 which adds the 2014 contribution to the basis showing on your 2013 8606. You can include the explanatory statement with your 2014 return explaining the 2014 recharacterized contribution.
  • If you do not pre tax TIRA dollars you can convert the recharacterized contributions back to the Roth as soon as they are done. Only the gains on the original contributions will be taxable.  If you DO have other pre tax TIRAs the conversion will be mostly taxable and you may or may not want to do that conversion.

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