Comments on: 2010 Roth IRA Conversion Rules

By: Elle Woods

Elle Woods — Mon, 18 Apr 2011 00:11:02 +0000

Roth conversions are NOT classified as roll-overs. Roll-overs are only applicable to same-IRA type transfers.

By: Abhay

Abhay — Sat, 09 Apr 2011 17:47:04 +0000

Can I contribute to non deductible traditional IRA before April, 17th, 2011 applicable for 2010 and convert to Roth IRA? or it needed to be done only in 2010 calendar year?

By: Joseph

Joseph — Thu, 24 Mar 2011 15:58:02 +0000

From what I have seen, there is supposed to be a Form 8608 to report the conversion and tax deferral, as well as elect out of paying the
tax in 2010. As of now, there is no form on the IRS wbesite for this.
Waiting for April 17th to release it???

By: Liza

Liza — Wed, 23 Mar 2011 17:41:55 +0000

I did exactly what you described in the “Non-Deductible Traditional IRA Loophole”. I started the investment into my non-deductible traditional IRA since 2006 when I learned about the 2010 new regulation. The headache is that my account doesn’t know how to fill out the 8606 form. It is a mess. I am still waiting for my account to fill my 2010 tax return. I think something is not right with 8606 form with the conversion.

By: janet

janet — Sun, 20 Mar 2011 23:52:33 +0000

I must take out 7,000 from my ira this year (age 73) Can I convert this to a roth. I do not need this income this year and our taxable income is around $6000 plus ss income a combined 23,000 . my husband has a pension (workmans comp ) non taxable (n.Y.) Our adjusted income the last two years has been around 13,000. Is it wise for this year and maybe in the future to take this withdrawal and put it into a roth . Then in case I do need it I will not be doubly taxed. Thank you.

By: Joyce

Joyce — Mon, 14 Mar 2011 13:10:16 +0000

How do I split my Trad IRA withdraws from my conversion to Roth so I can claim income from Roth IRA in 2011/2012?

By: Gwen

Gwen — Tue, 08 Mar 2011 06:39:26 +0000

I left my employer in February 2010. Do you know if I can convert my 401(k)to a ROTH IRA before the April 18, 2011 deadline, count the rollover toward my 2010 income, and pay the deferred taxes in 2011 and 2012?

By: Dan

Dan — Wed, 23 Feb 2011 04:20:28 +0000

I opened non-deductible IRA’s for 2009 (in April of 2010) and 2010 and converted both to Roth IRA’s in 2010. When I converted them, the amounts didn’t exactly match (lost some $ in the few weeks that it took to convert to Roth). When I fill out form 8606, it looks as thought the amount that I am “short” in the Roth is still in a traditional IRA (it doesn’t give a box to declare how much was gained or lost in the 60 day period to convert) Any thoughts how to report this?

By: Patrick

Patrick — Sun, 30 Jan 2011 15:45:35 +0000

Same question as Ace and Kappy regarding multiple conversions. Has this been answered? I know that Turbo Tax does not provide a method for segregating the treatment–it simply asks once if you want to declare the income in 2010 or if you want to defer to the ‘split income’ option between ’11 and ’12.

By: Diana

Diana — Thu, 13 Jan 2011 19:31:08 +0000

It isn’t enough to have non-deductible IRA’s segregated into their own account. If you have both non-deductible and deductible IRA’s, you have to consider both of the accounts when you convert to a ROTH. Ex: I have $30,000 NON-deductible IRA’s that I wanted to convert to a ROTH this year. However, I have a ROLLOVER (pre-tax) IRA. Even though it is segregated into its own separate account with Vanguard, I have to consider it when setting up the ROTH. I would have to pay income taxes now on $26,000 of my pre-tax IRA just to change the NON-deductible $30,000 to a ROTH.

By: Ace

Ace — Mon, 13 Dec 2010 19:02:48 +0000

Pretty much the same question as Kappy. I converted IRA’s into multiple ROTH IRA’s in 2010 (basically one for each stock type). I did that in case I needed to recharacterize, but I don’t need to do that. The question is can I pay tax on one ROTH in 2010, but spread the tax over 2011/12 on the other ROTH?

By: David

David — Tue, 09 Nov 2010 15:48:05 +0000

In the beginning of 2010, I contributed 10k to my Roth IRA, 5,000 for 2009 and 5,000 for 2010. I realized now that my AGI will be too high in 2010 for Roth IRA contributions. If I had known this to begin with, I would have contributed to a non-deductible IRA and converted but since I have already opened the Roth IRA and put in 5,000, is there a way to recharacterize it twice (to non-deductible and then back to Roth)? Otherwise, how can I convince the IRS I contributed to a non-deductible IRA and then converted to Roth?

Thanks.

By: kappy

kappy — Thu, 04 Nov 2010 23:19:57 +0000

I understand that in 2010 traditional IRA rollovers to a Roth IRA must be reported either as income in 2010 or split 50/50 as income in 2011 and 2012. The choice of taxable year in which the income is reported must be the same for all of a taxpayer’s IRA conversions in 2010. I am 63 years old and retired. In 2010 I converted a traditional IRA to a Roth IRA with the intention of splitting the income over 2011 and 2012. In 2010, can I also convert a portion of my 401(k) to a Roth IRA but report the income in 2010, or am I restricted to the same choice I have made for my traditional IRA conversion?

By: beachcrawler

beachcrawler — Wed, 03 Nov 2010 17:22:53 +0000

I lost almost all of my contributions to my Roth when the tech bubble busted. Since then I have rolled over a 401k plan to an IRA and now converted it to the Roth. After 5 years can I withdraw my original contribution tax free even though that money was lost long ago?

By: Christine

Christine — Mon, 20 Sep 2010 23:12:05 +0000

You can only convert the 401k to a roth if there is a separation of service from your employer (laid off, fired, quit, or are over age 59.5).