Taxpayer put $5000 in ROTH IRA early 2007. He then forgot his earlier contribution and put $5000 in traditional IRA in April 2008 designated for 2007. He is having ROTH contribution recharacterized to 2008, but how do we report and pay the 6% penalty?
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You are not making sense
Roth deposit in 2007 for 2007.
Traditional IRA deposit made in 2008 for 2007.
You say the Roth is being recharacterized to 2008. This is not possible. It could be recharacterized to a 2007 Traditional though.
I would just count the Roth as 2007 and recharacterize to Traditional i fyou want and change the 2008 for 2007 Traditional to a 2008 traditional. -
Excuse my incorrect terminology (recharacterize). Instead of withdrawing an excess contribution, it can be applied to the later year. This is what I meant. The taxpayer prefers to leave the deductible contribution intact instead of the non-deductible one.Comment
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