Recharacterized 2007 Roth IRA into Traditional IRA - tax deductible?

Question

I opened an Roth IRA in 2007, but put in the full amount, not knowing at the time there was an income limit. I was able to partially re-characterize the excess amount into a Traditional IRA, applicable for the 2007 year. My q is this: Traditional IRAs are tax deductible; is the amount i recharacterized tax deductible for the 2008 tax season, or has that moment passed in 2007?

thanks for your time!

Answer 1

Dear Offline,

  A recharacterization should be claimed for the tax year in which it was made.  If you made the change in 2007, you can file an amended return to claim the tax deduction.  See Publication 590 and the instructions for Form 8606 for details on how to report the recharacterization.  The spell checker doesn't like that word.

Answer 2

I don't quite follow what you did....

But, traditional IRA deductions are tax deductable, if you did it for the 2007 tax year, it is deductible for 2007 taxes.

To claim it, you file a 1040X amended return.