IRA Rollover

Archive for June, 2008

Question: I need to recharacterize from Roth IRA to other IRA because I contributed more than the limit.?

Q1. I already have a Rollover IRA, can I move to this? If not, only a Traditional IRA is one I can recharacterize to?
Q2. I have NOT filed the tax for this year yet. Should I do this recharacterization first and receive 1099-R form and submit? What if I recharacterize after submitting tax return? Will I pay the penalty?
Q3. How do I know if I am eligible for creating a Traditional IRA? I have 401K account at my company.

Thanks alot. Hope I am not asking too many questions at once

Answer: The limit is the limit – whether a traditional or Roth. Your TOTAL 2007 contribution for all IRAs cannot exceed $4K ($5K if 50 or older). The only exception would be if you are eligible for a SEP IRA.