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Partially phased out Roth contribution


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Guest Barney Byrd
Posted

TP made a $2,000 Roth IRA contribution for 1999. As it turns out, her income is above the threshhold to make a full $2,000 Roth contribution. She is only permited a $1,700 Roth contribution. I know the $300 excess in the Roth can be recharacterized into her traditional IRA. My question is, must the earnings also be recharacterized, or just the $300?

Posted

A recharacterization must include the applicable income.

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Barry Picker, CPA/PFS, CFP

New York, NY

Barry Picker, CPA/PFS, CFP

New York, NY

www.BPickerCPA.com

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