Bond pricing on Roth conversions

Dec 17, 2010 1 Replies
D

Two questions relating to transferring bonds from a traditional IRA to a Roth IRA


1) How is accrued interest treated as related to a Roth IRA conversion? Is the amount that was accrued to the bond while it was in the traditional IRA added to the conversion price or is it ignored?


2) What if the price that has been assigned to the bonds by the brokerage for the transfer is higher than what is shown on investinginbonds.com for for trades on that day. Can you change the price that is reported on the



1099 when filing the return?





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A

  1. The FMV of your IRA on 12/31 or on the date of a conversion includes accrued interest on any bond assets.
  2. No. If you have an issue with the FMV you should discuss it with the broker. I'm not familiar with investingbonds.com ticker prices. Are they showing the dirty price or the clean price? (Dirty includes the accrued interest).
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