Converting multiple IRAs
I have a client with 2 IRA accounts. 1 for $125,000 and the 2nd for $142,000. The client wants to convert both to ROTH and would like to claim the 1st IRA in 2010. If he does both this year can he spread the 2nd IRA over the 2 year period (2011 and 2012)?
Permalink Submitted by Alan Spross on Thu, 2010-12-02 18:52
No. The election of when to have a 2010 Roth conversion taxed must be the same for all of a taxpayer’s conversions. The client will have to decide whether it is best to defer to 2011 and 2012 OR convert a smaller amount and report it in 2010, then do another conversion in 2011 etc.
If client is married, the spouses can make different decisions on the year of taxation if they both have accounts to convert.