Alan S. wrote:Why do you want to recharacterize the Roth contribution?
1) Modified AGI too high to qualify?
2) Would rather have the TIRA deduction? But are you sure you can deduct it?
I do not know about AGI being too high. I would like to get a IRA deduction and get a $1250 higher refund.
Since you are in the 25% tax bracket, you shouldn't have a problem with AGI too high; the limit for direct Roth contributions is usually in the 28% bracket.
If you have a retirement plan at work (401(k), pension, etc), check the income limits; you can only deduct an IRA contribution if your income is below a certain level, and a Roth IRA is always better than a non-deductible IRA.
If you don't have a retirement plan at work, then your IRA contribution is always deductible.
Note that the $1250 is not a free lunch; you'll pay tax when you withdraw from the Traditional IRA, while you would probably not pay tax when you withdraw from the IRA. (It may still be a good deal, as you might lose only 15% of the Traditional IRA to taxes, while you are in a 25% tax bracket now.)