Started Roll Over started in 2010
I have a 401K to a Roth Roll Over that I started in 2010 but was not deposited into the Roth IRA until 2011.
The check was written 12/27/2010.
The company that has my Roth IRA labeled this as a 2011 Roll Over.
Am I correct that they need to document this as a 2010 Roll Over?
Permalink Submitted by Alan Spross on Mon, 2011-01-17 17:58
No, they are correct that this is a 2011 rollover CONTRIBUTION to the Roth, but it is still a 2010 Roth conversion, reported on your 2010 return on Form 8606. You will get a 2010 1099R from the employer plan. This means that you can still report the conversion income in 2011 and 2012 if you wish.
However, for purposes of the 5 year holding period for conversions OR for the Roth to become qualified if this is your first contribution of any kind, this counts as a 2011 contribution, and the early distribution penalty would apply to distributions attributed to this conversion contribution until 1/1/2016.