Traditional vs. Roth IRA
If someone wanted to convert a Traditional IRA to a Roth IRA, how many years do they have to pay income tax on that?
If someone wanted to convert a Traditional IRA to a Roth IRA, how many years do they have to pay income tax on that?
Permalink Submitted by Alan Spross on Mon, 2011-07-11 22:18
Income must be reported in the same year as the conversion. There was an exception for 2010 conversions only.
While the final tax is due for 2011 conversions next April, there could be underpayment penalties if withholding and estimates are not sufficient throughout the year.
Permalink Submitted by Jennifer Poole on Tue, 2011-07-12 04:08
[quote=”[email protected]“]Income must be reported in the same year as the conversion. There was an exception for 2010 conversions only.
While the final tax is due for 2011 conversions next April, there could be underpayment penalties if withholding and estimates are not sufficient throughout the year.[/quot
Thanks for your help!