Client's 2007 income was over the limit for Roth contribution. But he contributed $4000 in 2007 to his Roth (non deductible). He did the recharacterization from his Roth to his roll-over IRA (roll-over from his previous 401k account) just recently. He then realized that now he has put deductible and no deductible contribution in the same account.
In order to avoid any complication for his roll-over IRA investment, he would like to know if he can withdraw the amount he just transferred to roll-over IRA without any penalty or any issues. He actually had a loss on this contribution since he first contributed to his Roth IRA. He has not make any transactions with his roll-over IRA since he received the recharacteriztion amount from his Roth IRA. Will his loss tax detectable for 2008's tax filing?
Or, can he transfer the recharaterization amount to a brand new traditional IRA?
Thanks,
SLT
In order to avoid any complication for his roll-over IRA investment, he would like to know if he can withdraw the amount he just transferred to roll-over IRA without any penalty or any issues. He actually had a loss on this contribution since he first contributed to his Roth IRA. He has not make any transactions with his roll-over IRA since he received the recharacteriztion amount from his Roth IRA. Will his loss tax detectable for 2008's tax filing?
Or, can he transfer the recharaterization amount to a brand new traditional IRA?
Thanks,
SLT