Roth Recharacterization Question

In April, I moved my rollover IRA into my Roth IRA.. Obviously the value of this has gone down now and I am planning on recharacterizing it back into the Rollover IRA.. I am pretty sure that I am not going to have to pay any taxes whatsoever from any of the these conversions, but I just want to make sure I am covering all my bases before I send the paperwork in... Anyone have any input?

Nck4857,

You are right! If you recharacterize your 2008 ROTH IRA Conversion, you will not owe the tax on the conversion.

Note that you can not do another conversion for the longer of 30 days or until next year.

Now if you really want a conversion for 2008 and you otherwise qualify, you can do a second conversion of a slightly different amount. Then recharacterize your first conversion preferably to a new TIRA. This would give you the conversion you originally were after, and allow you to convert more shares for the same amount of tax.

The slightly different amount and the new TIRA are suggested so you can demonstrate to the IRS (should the need arise), that it was the first conversion you recharacterized.