Converting 2010 IRA contribution
We have several clients that made their 2010 IRA contribution with the intent to convert to a Roth. Can the client convert their 2010 contributions now or do they need to wait until after the tax year?
We have several clients that made their 2010 IRA contribution with the intent to convert to a Roth. Can the client convert their 2010 contributions now or do they need to wait until after the tax year?
Permalink Submitted by Alan Spross on Mon, 2010-02-15 21:39
They can convert immediately. These are probably people whose income is too high to deduct TIRA contributions or make regular Roth contributions. They may wish to make both 2009 and 2010 non deductible TIRA contributions and then convert. They will need an 8606 to report non deductible TIRA contributions for 2009 on the 2009 return, and the same for a 2010 contribution on the 2010 return.