If I convert money from a Traditional IRA into a Roth IRA and pay the owed taxes on it from income tax refund for 2009, do I have until April 15th to do this? I was told by someone that the deadline to do IRA to Roth conversions for that tax year is December 31st, not by April 15th of the following year as contributions do. SandyB
Traditional to Roth Conversion-what is deadline for 2009?
Mar 24, 2010
3 Replies
Sorry, you are too late for a 2009 conversion. The deadline for withdrawal from the Traditional IRA was 12/31/2009, with up to 60 days after that to actually open the Roth IRA.
"sandybeth" wrote
You were told correctly on the conversion rules.
Conversions are taxed in the year of the distribution, so if you were to convert now, it's a 2010 conversion, properly reported on your 2010 tax return. Of course, you are welcome to use your 2009 refund as an estimated (or applied forward) tax deposit toward the amount you'll owe in 2010.
Paul - a 2010 conversion has the option to claim the converted amount as income on the '10 return or to split it over the '11 and '12 return. This is a one time change that came with the income limit (being removed) not allowing those over a certain level to convert.
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