tax fun

[asthran]

So, apparently I can recharacterize some of my IRA contributions from last year, amend my return, and get an additional $400 back from the IRS.... It would also result in an account maintainance fee of $10/year for the next few years, most like, and then I'd have to deal with having both a traditional IRA and a Roth... So, question is, do I want to go through the bother, or would I rather have all my money be tax free?

Comments

[asthran.livejournal.com]

Oh, hey, I guess I never got back to you on this, didn't I?

I decided to not amend, and keep the money in the Roth.

Mostly, it was just because of the hassle: First, I'd need to contact Vanguard and do the paperwork to set up a Traditional (which I will need to do eventually, when I roll over my profit sharing from MarketLine Research, but still...), recharacterize $1000 of the Roth, amend my Federal tex return, and possibly my Minnesota returns also. Then, after I've eventually rolled over the PS stuff from MLR next year, I would get to convert the (then) $2k or so back into a Roth IRA, and get taxed on it all over again.

So, I figured, meh. I'll roll over the one when it becomes necessary, and not give myself the added hassle.

Make sense?