Roth Conversion
If a person does a Roth conversion in 2020 do they have three years to pay the tax due to the CARES Act?
Thank you I really appreciate you always being there to help!
If a person does a Roth conversion in 2020 do they have three years to pay the tax due to the CARES Act?
Thank you I really appreciate you always being there to help!
Permalink Submitted by Alan - IRA critic on Wed, 2020-05-27 17:38
First, the person must qualify for a CRD, and the final Regs defining a CRD have not yet been issued. Once it is clear that the distribution is a CRD, there is nothing in the CARES Act that precludes the repayment being made to a Roth IRA (conversions). As such there is also nothing to preclude the taxes being reported over 3 years either, even though this is obviously not what the CARES Act was intended to provide, which was liquidity to meet current expenses.
Permalink Submitted by James Arnold on Wed, 2020-05-27 17:46
Thank you!