SEP to IRA to Roth

[Guest susan036]

In 1998, I signed papers to roll over my Self-Employed Retirement Plan money into an IRA and then convert it to a Roth. (I am Roth-eligible.) My retirement money is all in a brokerage account. I subsequently took distributions in 1998 to pay for qualified educational expenses.

I just discovered that my broker incorrectly tried to rollover the funds directly into a Roth. He now has to open a traditional IRA and then a conversion Roth. This all has me thinking that I may be better off deferring the tax liability completely and just keeping my money in the Traditional IRA. (The liability isn't much but I am currently a student.) If I decide to keep the money in the Traditional IRA, does it sound like I will have to recharacterize?

[This message has been edited by susan036 (edited 03-29-99).]