non deducted ira

[Guest sdieddie]

i opened an ira for the tax yr '01, w/o knowing all the rules and regulations.

i did not/ could not deduct the $2000 because i already contributed to a 401k plan at work. so can i now convert this to a roth? do i have to pay a penalty?

i do not know if a form for this was submitted cause i files with intuit

'on line'? thx..........

[BPickerCPA]

If you (or anyone) contributed to a traditional IRA for calendar year 2001 and now decides that you would have preferred to have contributed to a Roth IRA, you can "recharacterize" the contribution along with applicable net income, and the law will treat it as if it had been contributed to the Roth IRA in the first place.

Unfortunately, there are still some custodians who are not aware of this, so if someone tells you that you can't, speak to a higher-up.

[Guest sdieddie]

thank you very much for your time and answer!!