Report Entire 2010 Roth Conversion in 2011?
I converted a traditional IRA to a Roth in 2010 and filled a form 8606 electing to report half the conversion amount in tax year 2011 and the remainder in 2012. My question is: can I report the full conversion amount on my 2011 taxes? I want to do this because I am concerned taxes could raise in 2012 and I’m not making much interest on the money by holding it another year.
Permalink Submitted by Alan Spross on Tue, 2012-02-14 02:48
Sorry, but you have no option now but to report half the conversion income in 2011 and 2012. The deadline for amending your return and/or recharacterizing half your conversion to report income differently was 10/17/2011, but that would have required you to report it all in 2010. Reporting all in 2011 was never an option.
Tax rates are not going up this year, but your taxable income might. Tax rates in 2013 are more in doubt.
Permalink Submitted by TT Pride on Tue, 2012-02-14 02:52
Thanks. If tax rates are not likely to change this year then I’ll be glad to pay over both years.