I am not an accountant, just a certified IRA specialist. That and 1.00 will get me a cup of coffee, i suppose. FYI, As long as she filed her taxes in a timely manner yes, she can recharacterize the apparent conversion up until the extended due date of 10/15/09 for a 2008 conversion. She will have to amend her return. She can explain the conversion and recharacterization dates and amounts on the 1040X. With that said let her discover what she needs to do from her accountant as crowman3 has suggested.