Missed Roth conversion deadline

Submitted by Florence Lotrowski on Tue, 2015-11-03 04:24

If one inadvertently misses the December 31st deadline for an IRA conversion, but has paid the tax for that previous tax year, as opposed to the following year (after December 31st) when the conversion was deemed made, is there anything they can do when the IRS sends a claim for additional taxes? Are there any circumstances that give the IRS discretion to treat the conversion as if it actually had been made prior to December 31st?



Submitted by Alan - IRA critic on Tue, 2015-11-03 05:17

  • How was the conversion done? If a TIRA distribution was taken prior to 12/31 and rolled over to a Roth IRA as a 60 day rollover, the conversion is considered taxable in the year the distribution was taken. In which year was the 1099R issued?  The IRS will not change the year the 1099R reports.
  • If the 1099R is issued for the second year, then there should be a tax refund for any extra taxes paid in the first year that could be saved to pay for the conversion in the second year.

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