roth
in 2011 can a couple with agi of $4,000,000 convert from an IRA to a ROTH? When will taxes be due on conversion?
Can a person make a non-deductible ira contrib ifthey have a 401k and Defined Contrib plan?
in 2011 can a couple with agi of $4,000,000 convert from an IRA to a ROTH? When will taxes be due on conversion?
Can a person make a non-deductible ira contrib ifthey have a 401k and Defined Contrib plan?
Permalink Submitted by Alan Spross on Thu, 2011-05-19 19:47
There is no longer an income limit for conversions. These taxpayers can convert and the added taxes should be handled either by a withholding source or by quarterly estimates. Perhaps they meet a safe harbor already, which in their case would be 110% of their 2010 tax liability. The final tax bill must be paid by 4/15/2012. They should not withhold from the TIRA distribution itself to pay the taxes except in very unique circumstances.
Anyone can make a non deductible TIRA contribution if they have earned income AND will not have reached age 70.5 in the tax year.