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Reporting Roth Conversions/Recharacterizations


Guest McCarthy

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Guest McCarthy
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Example 1:

01/26/1998

Open an IRA account with a payment of $5,000.

12/31/1998

Fair Market Value of $6,500.

04/15/1999

Create a 5498 with the following values:

IRA Contrib $5,000

FMV $6,500

IRA Box X

05/05/1999

Close IRA account and created Roth Account.

FMV $6,500

12/31/1999

1099-R reporting distribution (rollover)

Fair Market Value of $8,000

04/15/2000

Create the 5498.

Situation 1:

Roth Conv Amt $6,500

FMV $8,000

Roth IRA Box X

Situation 2:

Roth Conv Amt $6,500

FMV $8,000

Roth IRA Box X

Rechar Box X

Situation 3:

Rollover Contrib $6,500

FMV $8,000

Roth IRA Box X

Rechar Box X

Which of the above is correct or what is correct?

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