Two year deferral for taxpayers MFJ who both do conversions
With regard to the two year deferral and the election to opt out, my understanding is that married taxpayers filing a joint 2010 tax return can take different approaches pursuant to IRC Sec. 408A(d)(3)(A)(iii). Do I have this right?
If so, then married taxpayers who are both converting can effectively spread the income recognition related to 2010 conversions over 3 years, potentially maximizing AMT marginal rates where applicable.
Permalink Submitted by Alan Spross on Thu, 2010-04-22 20:52
Yes, that is correct. All each spouse needs is a source of retirement funds to convert in 2010.