IRA recharacterization

In 2008, I contributed $5000 to a Roth IRA. Later that year, I requested my fund company to recharacterize $2500 of those contributions to a traditional IRA. (My intent was to deduct $2500 on my 2008 tax return.) I just received a 1099-R from the company showing a gross distribution of $1700 attributable to the recharacterization.

Am I permitted to take a deduction for a traditional IRA contribution? If so, is the amount $1700 or $2500?

Izzy,

Why don't you recharacterized the entire amount ($5,000 less any losses)?

To determine if you can take a deduction for a contribution to a Traditional IRA much more information is needed. Things that come into the deduction determination are, your income, are you covered by a retirement plan at work and filing status are some of the factors.

You can make that determination by looking at IRS Pub 590, Individual Retirement Arrangements, page 13.