Okay, this is rather complicated - I messed up with an IRA in a couple of different ways and now am trying to rectify the situation. I would appreciate any suggestions.
I opened a regular IRA on April 14, 2000 (for 1999 tax year) and never claimed a deduction for it on my tax form (that year I think didn't earn much and didn't even claim deductions). I actually meant to open a Roth IRA, but did it with an online brokerage while I was online, and must have messed the online application up (I don't even have a copy of my original application).
In any event, I now a) am on my company's 401k plan and b) earn more than I am allowed for deducting an IRA for tax purposes. What would be the best way of handling this? Do I try to amend my previous tax return? Or can I somehow "cash out" my IRA and contest the 1099-R, saying that I never took advantage of the tax benefits of the IRA and so shouldn't be charged a penalty (someone suggested writing a hold harmless letter). Or should I roll it over to a Roth even though I'm no longer eligible to have an IRA? I'm really a novice, so any thoughts as to what my options are, are very much appreciated!
Thanks again!