Paying taxes on a Roth conversion, when do you chose?

I just converted my IRA and wonder how you tell the IRS when you are paying taxes on it. I know you have a choice of all in 2010 or splitting evenly between

2011 and 2012. But how exactly does that work? When and how do you make the choice? I just converted and figured it would be on the conversion form, but it wasn't. Thanks much
Reply to
Puffin
Loading thread data ...

The default is to recognize the income equally in 2011 and 2012, although you can elect to recognize it all in 2010.

The exact method, forms or schedules to use have not yet been announced. When income was recognized over 4 years in 1998, form 8606 was modified to allow four-year reporting of income.

It is possible that this form will be modified for 2010, or perhaps a whole new form will be created for the purpose.

Reply to
Arthur Kamlet

When you file your 2010 return. As Art said, we won't know the exact method until the 2010 forms are out this fall. The decision is irrevocable.

Phil Marti VITA/TCE Volunteer

Reply to
Phil Marti

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.