Recharicature of 1998 Roth in 2002

[Guest billlehnertz]

Client's broker told him that 1998 Roth conversion could be recharacterized on his 2002 tax return if done before 10/15/2003 (2 days from now.) We cannot verify this information. We assume the broker is wrong. Please let us know if we are correct.

[mbozek]

Conversions require amending the original tax return. The s/l for amending a 1998 tax return expired on 4/15/02. See IRS pub 590 P. 57-59 for time limits on recharacterizaton of Roth IRAs.

[Appleby]

Not unless the client received a ruling from the IRS, allowing him to recharacterize his 1998 conversion at this late date.

The deadline for recharacterizing a contribution/conversion is tax-filing deadline (including extensions). If the individual files his/her tax return by April 15, he/she receives an automatic 6-month extension, which means the deadline would be October 15 of the year following the year the contribute was made. (for 1998 conversions, the deadline was 12/31/1999).

The client may want to ask the broker to cite the rule on which he/she based the information