Is it permissable to accelerate the remaining 3/4 of my Roth conversio

[Guest]

For Tax Year 1998, I converted a traditional IRA to a Roth IRA and chose to claim the "income" over 4 years. Because of casualty losses in 1999 due to Hurricane Floyd, I think it may well be to my advantage to claim the balance as income in 1999, rather than spreading it over the 3 remaining years as originally planned. "Do"able or not?

[John G]

This is one of the questions my CPA and I researched earlier this year. At that time the answer was NO.

The hurricane might have changed the options available to you. Ask your CPA or the IRS in your area.

[This message has been edited by John G (edited 12-28-1999).]

[Guest Fishchick]

I wonder if you could do an amended return for 1998 and change the election on form 8606? I don't think you could do it on this year's 1040, however. I'm pretty certain the answer is no. However, if you hurry, you could still recharacterize the 1998 conversion, and then do a 1999 conversion, then all the income would be includible in 1999 anyway.

[This message has been edited by FishChick (edited 12-28-1999).]

[BPickerCPA]

The answer is no. You can't even do an amended return for '98 to change the election.

[Guest MTL-CPA]

If the IRA has not grown significantly you could recharacterize to a regular IRA and reconvert to a roth IRA by 12/31/99. You would have to file an amended 1998 tax return to eliminate the 1/4 you picked up. You would then be required to pick up the entire conversion at the new value as income in 1999. But there's probably not much chance pulling this plan off at this late date in the year.