Late Roth Conversion
Our client wanted to convert an IRA annuity in 2020. For several misguided reasons, this was not done. Is it too late for an annuity carrier to convert this IRA annuity to a Roth annuity for the 2020 tax year? Thanks much. Paul McG
Permalink Submitted by Alan - IRA critic on Tue, 2021-03-16 17:06
It is too late. If the annuity carrier had been 100% at fault for this, they might have had the authority to correct their error, and even those reconstructions are difficult to achieve. Well, perhaps client will get larger stimulus checks as a result of not processing the conversion.
Permalink Submitted by Paul McGillivray on Tue, 2021-03-16 17:08
I appreciate your sense of humor. I was thinking they were SOL. The amount of the missed conversion was $80K so you are probably right abouit their 2021 stimulus check. Who saw that coming, eh? Thanks much.