Election to pay tax in 2010
If you have two Roth Accounts that you converted in 2010 can you elect to pay the tax on one of the accounts in 2010 and pay the tax on the other account in 2011 and 2012???
If you have two Roth Accounts that you converted in 2010 can you elect to pay the tax on one of the accounts in 2010 and pay the tax on the other account in 2011 and 2012???
Permalink Submitted by Alan Spross on Tue, 2010-01-26 19:59
No, you must make the same election on ALL your conversions in 2010. However, if you are married your spouse can make a different election on any conversions they do than the election you make.
The deadline to make your election is 10/17/2011.
Permalink Submitted by Marvin Rotenberg on Tue, 2010-01-26 20:01
This is not real clear in the current regs. The last time you could spread the income on conversions was in 1998. Form 8606 at that time was used for conversions aggregated all account converted in that year. Our best guess at this time is that it is all or nothing. Pay the tax in 2010 on all the conversion in 2010 or spreadit over 2011 & 2012. The spread being the default. If however, a husband and wife each convert they can each make an election to use either method.
Marvin