NIA Calculation Worksheet for Partial Recharacterization of a Roth IRA Conversion
Last Updated April 4, 2009
Steps
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What to do
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How it is done
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Input results here
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Step 1:
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Calculate the adjusted closing balance
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Step 2:
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Calculate the adjusted opening balance
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Step 3:
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Subtract the adjusted closing balance from the adjusted opening balance
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Adjusted closing balance - adjusted opening balance
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Step 4:
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Divide the results from step 3 by the adjusted opening balance
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(Adjusted closing balance - adjusted opening balance)
Adjusted opening balance
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Step 5:
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Multiply the results from step 4 by the Roth conversion amount that is being recharacterized
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(Adjusted closing balance - adjusted opening balance)
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x
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Conversion
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Adjusted opening balance
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The results from step 5 is the NIA
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Step 6:
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Subtract the results from Step 5 from the conversion amount
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Value of conversion ( when conversion occurred) + NIA
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The result from step 6 is the market value of the assets that should be recharacterized.
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