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If you convert your Traditional IRA to a Roth IRA, you may still be subject to pay income tax and part of the contribution. To make sure that you properly file the right paperwork, you should fill out Tax Form 8606. You should also seek counsel from your Financial Planner and personal accountant if you need more help.
Last April by mistake I contributed through Fidelity into regular IRA $250 more than I was allowed for deductible contribution in 2006 tax return.
Is it possible to correct this mistake by requesting this money back or by moving $250 from IRA to Roth Ira, where my contribution was $750 less than allowed?
Maybe it is simpler than to fill in quite complicated form 8606.
Thank you in advance,