I would like to recharacterize some of my 2008 contribution from Tra. IRA to Roth IRA due to ineligibility to receive a full tax deduction. I found some advice/formula to calculate earning when filing income tax return investopedia.com/articles/retirement/03/092403.asp but this doesn't solve my problem when I try to recharacterize the non-deductible amount in-kind (stock). here is my scenario:
2/1/2008 contribute $100 to Tra. IRA and bought 5 stock A @ 20
3/1/2008 contribute $100 to Tra. IRA and bought 10 stock A @ 10
Now when filing income tax, I realize my non-deductible is $50 and stock A is in the price range of $5/share. What I want to do in this scenario here is to recharacterize $50 from Tra. IRA to Roth IRA in-kind without selling my stock and convert to cash.
Any help would be appreciated. thanks in advance.