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Conversion deadline


Guest hobo

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Posted

Does a traditional IRA to Roth Conversion have to be completed by 12/31/98, or started by, to qualify for the 4 yr installmt plan? I've seen both explanations.

Posted

The money has to be OUT of the traditional IRA by 12/31. It can go into the Roth later, provided you meet the 60 day rollover requirements.

Most trustee to trustee transfers are effected where the money is out of the traditional and into the Roth simultaneously.

If you submit the paper work to the broker, and they don't get to it until Jan, then you do NOT have a '98 conversion.

Barry Picker, CPA/PFS, CFP

New York, NY

www.BPickerCPA.com

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