Mark Bole wrote:

- quote -

Sorry, upon re-reading I see your statement above is accurate, but I
don't think it applies at all to the OP's situation. He apparently
doesn't have, and isn't concerned about, a deductible loss. What he is
trying to accomplish with the recharacterization, is to not pay tax in
the first place on conversion income that has since evaporated.

-Mark Bole

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removeps-groups[at]yahoo.com wrote:
- quote -

But the conversion amount recharacterized should still be $100K under
most circumstances (did you have other contributions or distributions
during the calculation period from conversion date to recharacterization
date?)


- quote -

You could do more research, or hire a professional. It's not likely
that your 1099-R forms alone will resolve everything, a statement to the
IRS with your return will most likely be required.

- quote -

You should re-read the article you posted. It's not common to have a
basis in a Trad. IRA, so what loss are you talking about?

-Mark Bole

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

On Feb 4, 10:57 am, Gary <gary...[at]hotmail.com> wrote:

- quote -

Use form 8606 to report conversions, recharacterizations, and non-
deductible contributions. Do you do it yourself using a computer
program or write into the forms directly? The loss is deductible only
if close out all of your traditional IRAs, and the loss is only
allowed on your non-deductible contributions, and the loss is subject
to the 2% of AGI rule (only the loss over 2% of your AGI is
deductible), and the loss is not allowed under AMT (ie. so it may
increase your AMT tax). See http://asktheexpert.blogs.money.cnn....ur-ira-losses/
for an explanation.

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<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

In 2008, I had the following transactions (all with Fidelity):

Convert IRA to Roth...........................100,000
Return of excess contributions...............5,000
Recharacterized Roth back to IRA.......50,000

I did the return of excess because I realized that I had forgotten to
take my minimum required distribution before converting.
I did the partial recharacterization because I realized I wouldn't have
enough cash to pay the resulting income taxes.
Because of losses, the amount Fidelity actually withdrew and returned
to me was $4,500.
Because of losses, the amount they actually transferred back into my
IRA for the recharacterization was $45,000.

I usually do my own income taxes, but I'm very confused about what to
report how and where in filling out my income tax. Can someone out
there give me a clue? Are there any tax consequences to the losses?

Thanks in advance.

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >