IRA CONVERSION in 2010

Can an individual with two IRA’s convert one to a roth in 2010 and pay the tax in 2010 and convert the second IRA to a Roth and elect to pay the tax in 2011 and 2012? This would be done to take advantage of the tax brackets each year.



No, the tax election must be the same for all IRA conversions done regardless of the number of different accounts. However, a married couple can accomplish what you propose if each has accounts to convert because one spouse can make a different decision about the deferral than the other spouse. That would allow use of the marginal tax bracket for 2010, 2011 and 2012 on either joint returns or married/separate returns.



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