A husband and wife both made $4,000 contributions to their Roth IRAs in April 2007 for the 2007 tax year. This has been the only contribution to each of their Roth IRA accounts since inception. As they prepare their 2007 returns, they decide to file separately to save state taxes, which negates their ability to contribute to a Roth in 2007 (in addition their 2007 modified AGI was also too high and they couldn’t contribute to the Roth in 2007 for this reason as well). Therefore, we are preparing the form to recharacterize each of their Roth IRA contributions to be a non-deductible traditional IRA contribution for the 2007 tax year and will have all of the paperwork filed with the institution prior to 4/15/08. The entire Roth IRA will then become a new IRA account via direct trustee-to-trustee transfer for each. My question is can they just report all of this activity as a non-deductible IRA contribution on the Form 8606 on their 2007 1040s or should they also file a statement attached to their 2007 1040 explaining the recharacterization as well? I reviewed the Form 8606 instructions and I wasn’t entirely clear on the required disclosures. It appeared to me an explanatory statement isn’t required for their situation, but I thought I’d post this to double check. Thanks!