death after roth conversion
What happens if a taxpayer converts an ira to a roth IRA and files his 2010 return with the election to recongize the income in 2011 and 2012 and then passes away in the second half o 2011. Do we have to go back and amend the 2010 return and pick up all the conversion.
Permalink Submitted by Alan Spross on Mon, 2010-01-25 04:25
The options depend on the designarted beneficiary.
If there is a sole spouse beneficiary on the Roth IRA, the surviving spouse can preserve the two year income deferral on the conversion if they wish. This irrevocable decision must be made by the extended due date of the year following spouse’s death, 10/15/2012 in this case.
If the Roth has a non spouse beneficiary, then all the remaining income must be reported on the return for the year of death, in this case in 2011.