ELECTION BY ONE SPOUSE TO SPREAD ROTH IRA CONVERSION TAX

The husband and wife each have an IRA they want to convert to a Roth IRA in 2010. One wants to spread the tax over the 2011-2012 period, the other doesn’t. Can that be done?
John
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Yes. Spouses can make a different election on the deferral. But all the conversions done by any specific spouse must have the same election.

This is a good strategy to enable use of the marginal tax brackets for all 3 years. The deadline to make or change the election is 10/17/2011 for 2010 conversions.

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