2010 Roth Conversions

[Cat in OH]

I'm confused on one issue about the two-year tax payment allowed on IRA conversions to Roth accts made in 2010. I see references to claiming half in 2011 and half in 2012. Does that mean claiming half on the return prepared in 2011 for tax year 2010 and half on return prepared in 2012 for TY 2011. Or does that mean on the returns for TY 2011 and TY 2012? If it means the second, can any of the conversion be claimed for TY 2010 or is it an all or none thing?

I apologize if this is something I should know, but I have such a small practice that it's only an issue for one client and I have not been able to find an answer anyplace online.

Thanks,

Cathy

[TAXBILLY]

http://www.rothira.com/

taxbilly

[Gail in Virginia]

Although this article discusses the taxing of the conversion 50/50 in 2011 and 2012, it is my understanding that you also have the option to have it all taxed in 2010 like normal if you so elect.

[mcb39]

Although this article discusses the taxing of the conversion 50/50 in 2011 and 2012, it is my understanding that you also have the option to have it all taxed in 2010 like normal if you so elect.

This is also my understanding. But, no proportionate split in 2010, ALL or nothing.

[mcb39]

I'm confused on one issue about the two-year tax payment allowed on IRA conversions to Roth accts made in 2010. I see references to claiming half in 2011 and half in 2012. Does that mean claiming half on the return prepared in 2011 for tax year 2010 and half on return prepared in 2012 for TY 2011. Or does that mean on the returns for TY 2011 and TY 2012? If it means the second, can any of the conversion be claimed for TY 2010 or is it an all or none thing?

I apologize if this is something I should know, but I have such a small practice that it's only an issue for one client and I have not been able to find an answer anyplace online.

Thanks,

Cathy

Cathy, you have a picture of my cat, Annie. Humane Society cat and we love her a lot.

[TAXBILLY]

Although this article discusses the taxing of the conversion 50/50 in 2011 and 2012, it is my understanding that you also have the option to have it all taxed in 2010 like normal if you so elect.

One of the links in the article that states the options and provides an example.

https://www.wachovia.com/common_files/RothConversionFactSheet.pdf

taxbilly

[Cat in OH]

One of the links in the article that states the options and provides an example.

https://www.wachovia.com/common_files/RothConversionFactSheet.pdf

taxbilly

Thank you. That the first article that specifically says "...included in 2011 tax filing and 50 percent in the 2012 tax filing...". That was what I needed to verify. That's different from my client's understanding that he could claim half of the conversion in 2011 on his 2010 return and half in 2012 on his 2011 return.

Cathy

[Cat in OH]

Cathy, you have a picture of my cat, Annie. Humane Society cat and we love her a lot.

Squeak is a rescued cat too...she showed up at the plant we were working at in the middle of winter about 6 years ago. My husband, who is allergic to cats, was worried that she'd freeze so she somehow got herself in a box the back seat of the car and came home with him.

[mcb39]

Squeak is a rescued cat too...she showed up at the plant we were working at in the middle of winter about 6 years ago. My husband, who is allergic to cats, was worried that she'd freeze so she somehow got herself in a box the back seat of the car and came home with him.

That's pretty amazing because I have seen a lot of Calicos and this is the first one I have seen who has the same markings as Annie. We always had Siamese before, but I was cat shopping and this one just pulled at my heartstrings for a couple of weeks until we decided to go and adopt her. Thanks for sharing.