ROTH conversion tax impact
I have a Traditional IRA. Under the new 2010 IRS rules, can I do two conversions to a ROTH in 2010(receiving two separate 1099R’s) and for income tax purposes treat one of the 1099’s as 2010 income and defer the second 1099 to the 2011 and 2012 tax years?
Permalink Submitted by tomd37 on Sat, 2010-05-15 17:02
As I understand the rules for 2010 conversions, a person has two options when doing conversions this year. The first is to pay the tax on your 2010 tax return. The other is to defer the tax; one-half on your 2011 return and one-half on your 2012 return. I don’t believe a person has the option to do both methods on more than one conversion.
That said, a couple doing conversions can split the tax method; one can do 2010 taxes and the other 2011 and 2012 taxes.
Let’s see what others have to say.
Tom D.
Permalink Submitted by Alan Spross on Sat, 2010-05-15 20:48
Tom is correct.