Quote:
Originally Posted by jIM_Ohio
Recharactorize is the right term. I had to do this last year at tax time. I would NOT do the recharactorization until turbo tax tells you to.
There is a section on IRAs. Answer all questions truthfully. Turbotax will tell you what forms are needed and what needs to be done. It's possible you are eligble for a partial Roth contribution. It's possible your AGI (Adjusted gross income) is under the contribution limits. Gross income and AGI are two different numbers. AGI takes deductions into account (mortgage interest, dependants, child care) where as gross income is just a number. Roth limits are based on AGI.
Consider bumping up 401k contributions in 2008 to allow you to maintain Roth eligibility for 2008.
|
Sounds like a plan. I will wait until I file in February to move any money. I am just estimating now so you are right that I might eek in below the limit for AGI.
I currently max out the yearly 401(k) numbers ($15,500) so I can't use that to help me out.
Thanks.