Yesnam Posted March 9, 2011 Posted March 9, 2011 If one converted traditional IRA into Roth IRA in 2010 and opted to report conversion income in 2011 and 2012, is it still possible for him/her to convert more in 2011? If it is, how is this additional conversion (done in 2011) to be reported?
mbozek Posted March 9, 2011 Posted March 9, 2011 If one converted traditional IRA into Roth IRA in 2010 and opted to report conversion income in 2011 and 2012, is it still possible for him/her to convert more in 2011? If it is, how is this additional conversion (done in 2011) to be reported? The conversion election for 2010 affects only amounts converted in calendar year 2010 and allows for 50% of the converted amount to be included as income in 2011 and 50% in 2012. Pre tax funds converted to a Roth IRA in 2011 will be taxed as income in 2011 along with 50% of the amount converted in 2010 which could result in a significantly higher federal and state taxes being imposed on the combined amount of both conversions. mjb
Yesnam Posted March 10, 2011 Author Posted March 10, 2011 If one converted traditional IRA into Roth IRA in 2010 and opted to report conversion income in 2011 and 2012, is it still possible for him/her to convert more in 2011? If it is, how is this additional conversion (done in 2011) to be reported? Thanks for clarifying the issue for me.
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