Recharacterizing 2006 Roth IRA Contribution

[TomG]

I think I finally have this figured out.

Here's my situation... I made my 2006 Roth IRA contribution in January 2006. For better or worse, my MAGI for the year is over the income limitations for a Roth contribution.

Here's my solution...

1) Create new nondeductible traditional IRA account with my custodian

2) Recharacterize my 2006 Roth IRA contribution and related earnings through a trustee-to-trustee transfer into the new nondeductible traditional IRA Account (my custodian will calculate this amount for me?)

3) Remove any reference to my original Roth IRA contribution from 2006 tax return (since the recharacterization occurred before income tax return due date it is assumed the contribution was made to the nondeductible traditional IRA account in the first place)

4) Report my nondeductible traditional IRA contribution using IRS Form 8606

5) Attach a statement to my 2006 tax return stating, "I contributing $4,000 to my existing Roth IRA account on 1/5/2006. On February XX, 2007 I recharacterized that contribution by transferring $4,XXX, the balance of the contribution plus related earnings to a non-deductible traditional IRA in a trustee-to-trustee transfer. I have filed IRS Form 8606."

6) When I'm eligible for a qualified conversion (assuming I meet AGI requirements, what is the minimum length of time I have to wait?), I will convert my nondeductible traditional IRA account into a Roth IRA (only amounts above my original $4,000 contribution will be taxed at my marginal rate).

Is this the correct way to do it? I'm sorry for so much minutia, but I figure the tax peeps out there appreciate the details. Thanks for anyone who is patient enough to respond.