[...] If you have an old 401(k) that you have rolled over into an IRA, the question might be what do you use as the original tax basis?  In  the face of the 2010 conversion or any conversion in general the basis, or the amount that you will be taxed on, is the amount of the account at the time of conversion.  For example, if you had an old 401(k) that was worth $45,000 and rolled it over into an IRA, and now that IRA is only valued at 25,000, the 25,000 is the amount you’ll use for your basis.  If you elect to do the conversion at 25,000 and then as the year goes by and the account drops more, the option might able to do what’s called an IRA recharacterization. [...]

[...] My Dollar Plan: IRA Recharacterization [...]

[...] My Dollar Plan: IRA Recharacterization [...]

Tax Carnival #34: Big Tax Dance…

With tonight being the championship game of the NCAA basketball tournament, the 34th Carnival of Taxes is the Big Tax Dance edition. Now I gotta admit upfront I’m not a basketball fan, so I’m going to keep my hoops’ analogies simple. That pre-game a…

[...] from My Dollar Plan presents IRA Recharacterization: What, Why, How and When?, and says, “Just in time for taxes this [...]

[...] All About IRA Recharacterizations – While it isn’t something you’ll need to do that often, there are some situations that could warrant a recharacterizatio of some or all of your IRA assets. [...]

Any tips on filling out Form 8606? I haven’t even looked at it yet. When do you get the 1099-P and file 5498? Clearly this won’t get issued in time to make the April 15th deadline… I do not owe, so I don’t have to worry about an extension.

Thanks for the help!