2009 Roth Conversions
Did I read somewhere that individuals that convert Traditional IRA’s in 2009 would be able to spread out the tax obligation over 4 years? Sorry, can’t find the article in my Ed Slott newsletter. Thank you.
Russell
Did I read somewhere that individuals that convert Traditional IRA’s in 2009 would be able to spread out the tax obligation over 4 years? Sorry, can’t find the article in my Ed Slott newsletter. Thank you.
Russell
Permalink Submitted by Alan Spross on Tue, 2009-02-10 21:32
No.
It was conversions in 2010, and the taxable income would be reported 50% in 2011 and 50% in 2012. The taxpayer can also elect to report the entire conversion in 2010 if they wish.
Back in 1998 when the Roth was first introduced, a 4 year option was offered, but this time it is only 2 years.
Also, the income limits for conversions no longer apply starting in 2010.
Permalink Submitted by J. Russell Armstrong, CFP on Tue, 2009-02-10 22:52
Thank you.
RA