2010 conversion questions
Two questions on 2010 Roth conversions:
1) As I understand it, you can claim 2010 conversions in 2010 or spread them over 2011 and 2012, but can’t claim part in 2010 and spread the balance over 2011 and 2012. Assuming that this is correct, if a husband and wife each have their own conversion, can one elect to claim the conversion in 2010 and the other claim the conversion in 2011 and 2012?
2) The normal recharacterization deadline for conversions is the tax filing deadline including extensions (usually October 15th of the year after the conversion). If you elect to spread the conversion over 2011 and 2012 is the deadline still 10/15/11 or, since the returns showing the income have not been filed yet, does it move to 10/15/12? 10/15/13?
Thanks in advance.
Glenn
Permalink Submitted by Alan Spross on Fri, 2010-03-05 19:34
1) Yes.
2) The recharacterization deadline for all conversions done in 2010 is 10/17 (weekend)/2011, whether the income will be deferred or all reported in 2010. This deadline applies to the reporting year decision as well as for partial or full recharacterizations of 2010 conversions. By this date, taxpayer will have complete knowledge of the 2010 tax situation, a good estimate of his 2011 taxable income, but very limited knowledge of how 2012 will look.