Any limit on number of conversions per year?
Hello,
I have a CPA that is insisting there is a [b]limit to the number of times you can convert to a Roth per year[/b]. Actually, he is stating only one conversion per calendar year. I don’t remember ever reading about any such restrictions. The only limit that I remember is that one recharacterization per year.
Can anyone out there help confirm or refute the CPA’s claim.
Much Appreciated,
CFP
Scotts Valley, CA
Permalink Submitted by Alan Spross on Wed, 2010-11-17 18:17
There is no limit on the number of conversions, the number of different accounts used, or the number of recharacterizations over any period of time.
There is a waiting period for re conversions of the same assets after a recharacterization of those assets. The waiting period is the longer of 30 days following recharacterization or until the next calendar year after the conversion year, whichever is longer. In this sense, you can only convert the same assets one time per calendar year, so this might be what he was thinking.
If someone does a conversion every month, the 1099R for the year will just total up the annual conversions. Same with recharacterization 1099R forms.
Note that no matter how many conversions you do for 2010, you must make the same reporting decision on all of them, ie either defer for two years or opt out and report the conversion income totally in 2010.