Han wrote:

- quote -

Only conversions done in 1998 could be spread over 4 years.

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"A.G. Kalman" <glendale202-mtm[at]yahoo.com> wrote in
- quote -

Thanks for all your answers. The reason this account was
not yet converted is that another account had precedence. I
did do the 4-year spread when I had the chance, but I didn't
want to get the privilege <grin> of paying much more tax,
even if spread out over 4 years.

I have some time to reconsider what to do, since the funds
have to be transferred from one trustee to another anyway.

--
Best regards
Han
email address is invalid

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Han <noone[at]nospam.invalid> wrote:
- quote -

That was a one-year "deal" offered in 1998 ONLY (first year
for Roth IRAs).

- quote -

The conversion would be taxable in the year of conversion
(withdrawal from traditional IRA account). There is no
option to pay the taxes over several years.

- quote -

For Roth IRA eligibility, your modified AGI (without the
conversion amount) must be less than 100K. This has not
changed since 1998. Of course, for income tax purposes, your
total AGI (INCLUDING the conversion amount) is taxable.

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Han wrote:
- quote -

The 4 year spread was a one time event. All IRA to Roth IRA
conversions are taxable in the year of the conversion.

- quote -

For purposes of the $100k test, you do not include the
conversion amount. As the conversion amount is taxable, it
will increase your AGI and will impact any other tax benefit
that uses AGI.

- quote -

No it is not as this amount is not indexed for inflation.

--
Alan
http://taxtopics.net

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Han <noone[at]nospam.invalid> wrote:

- quote -

The 4-year spread was a special feature that was only
allowed in the year that the Roth IRA was originally created
(1998 I think). Any conversions since then are fully taxed
in the year they take place. You should have taken
advantage of it when you had the chance, now it's too late.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

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Han <noone[at]nospam.invalid> writes:

- quote -

It's all taxable in the year you convert. (Remember, you
don't have to convert everything in your traditional IRA.
You can choose to convert as little or as much as you like.)
The 4-year spread was a 1998 only provision.

- quote -

Yes and no. The MODIFIED AGI limit for conversions remains
$100,000. Remember that the income from the Roth conversion
is not included in the MAGI used to determine conversion
elegibility. See IRS Publication 590.

Phil Marti
Topeka, KS

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"A.G. Kalman" <agk202[at]netscape.net> wrote in news:101c936dh8lh813

<snipped part> Whomever received the transfer and converted
- quote -

I previously did a conversion, and the income/tax was
distributed over 4 years. If I now do another conversion, is
this conversion taxable in total in the same year (2004)? Or
can it be spread out over 4 years again? Is the "income" due
to the conversion added to/included in our AGI? Isn't the
AGI limit for 2004 higher than 100K for MFJ?

TIA for your answers ...

--
Best regards
Han
email address is invalid

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jaarons wrote:

- quote -

I am going to assume that you meant to say that you rolled
over your 401K to an IRA and you then converted that IRA to
a Roth IRA. I will also assume that you had no cost basis
in your 401K (no after-contributions). You can not roll over
a 401K directly to a Roth IRA.

The 401K plan administrator will issue a 1099-R reflecting
the distribution from the 401K to the IRA. If this was a
direct transfer between plans, then your 1099-R should
reflect a taxable amount of zero and the proper exception
code in Box 7. Whomever received the transfer and converted
it to the Roth, will issue a 1099-R reflecting the
conversion. All of the conversion is taxable. You would
complete Part II of Form 8606 and post the result to the
applicable line on Form 1040 or 1040A. Please note that if
your Modified AGI for 2003 was over $100K, you are not
allowed to convert any amount to a Roth. If you file as
married-separate and you lived with your spouse for any
period in 2003 you cannot convert any amount to a Roth
regardless of your income level.

--
Alan
http://taxtopics.net

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"jaarons" <jaarons[at]hotmail.com> wrote:

- quote -

You will be taxed as ordinary income, which is higher than
other favorable rates and will be reported on Form 1040.

bw

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jaarons[at]hotmail.com (jaarons) writes:

- quote -

See Part II of Form 8606. The entire amount converted will
be ordinary taxable income to you in the year converted.

Phil Marti
Topeka, KS

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I rolled my CompanyA 401K over to a Roth IRA when I went
work for CompanyB because they didn't have a 401K. I then
went to work for CompanyC and started a new 401K. I have a
seperate 401K and Roth IRA that I max contributions every
year. How are the taxes determined from when I went from
401K to Roth IRA? ie Is the tax rate 20%? What IRS form do
I list this on? ie 1040

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