dbmon...[at]elvis.com wrote:

- quote -

No.

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<dbmonkey[at]elvis.com> wrote:

- quote -

not worth the effort

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

We have just completed our 2006 tax return (married filing
jointly) and our AGI is about $50,900. This puts us just out
of reach of the retirement savings tax credit, which would
give us $200 if we could get our AGI down to $50,000 or
below. It would be $400, but one of us was a student last
year so it's only $200. We each contributed $4000 to our
Roth IRAs in 2006. Here's the question: Can we do some
shuffling to claim the credit, and then shuffle back
afterwards? This would involve a conversion or
recharacterization (not sure which one) of $900 from one of
the Roths to a traditional IRA, effective in tax year 2006,
deducting $900 from our AGI. More questions:

If we can do the above, can we move the $900 back to the
Roth (and pay income tax on it, of course) effective in 2007
or 2008? It's important to us that this money end up in a
Roth, as we plan to be in a higher tax bracket when we
retire than we are now.

Will doing this limit our ability to contribute $4000 each
(in addition to the $900) to our Roths in 2007 and $5000
each in 2008?

Finally, is all this worth the effort for a measly $200?

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >