Options for Husband and Wife Converting in 2010
In 2010 both a husband and the wife convert their individual IRA’s to Roth IRA’s. They file a joint income tax return.
Will one be allowed to include all of the converted amount in taxable income in 2010 while the other elects to spread the inclusion of income into 2011 and 2012?
Permalink Submitted by Alan Spross on Wed, 2010-04-28 18:39
Yes, they can make different elections. That would allow them to use their marginal tax brackets in all 3 years.
But an individual spouse cannot make a different election for different 2010 conversions done by that same spouse. They both have the usual recharacterization options available as well to fine tune the amount of income included on their returns for all those years.
The deadline for both recharacterizations and the year of income inclusion is the same….10/17/2011.