I have contributed $4000 in my Roth IRA for 2006.

Now I find out that it would be better for me to pay the income tax on an inherited annuity rather than having the estate pay the higher income tax rate. The annuity will be about $175,000, and that would put me over the limit for contributing to a Roth (married filing jointly)

Do I withdraw that $4000 and put it in a traditional IRA for this year? Is there a "trick" to it, or is it fairly simple. What about any interest that was earned? Would that be included or considered "over" the $4000 allowable contribution.

Thanks for any help in advance
sandcrow

Sandcrow:

Just contact the IRA custodian and tell them to convert the Roth IRA to a traditional IRA. Tell them why, and there will be no problems.