Harlan Lunsford wrote:
- quote -

DH is my shorthand for Dear Husband. I do the reasearch,
lay out the options. After discussion we decide because the
tax consequences are shared the last time I read the IRCode.
I am younger and have IRAs that could be converted too.

- quote -

After posting it appears that there is a 2-year window in
2010.

Thanks

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Harlan Lunsford wrote:
- quote -

Sounds like the OP is confusing the first year of Roth (was
it five years the conversion was spread out for tax
purposes?) and the 2010 conversion in which the income may
be spread over two years (2011 and 2012 tax returns).

JOE
JoeTaxpayer.com

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Harlan Lunsford wrote:
- quote -

"Deceased Husband"? "Designated Hitter"?

- quote -

As the law stands today, I recall that tax on Roth
conversions can be spread over two years beginning in 2010,
in conjunction with the elimination of AGI limitations for
conversions. Some people might start making maximum
non-deductible Traditional IRA contribtions every year until
then to maximize the amount they can convert.

-Mark Bole

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Perplexed" <nellplotts[at]yahoo.com> wrote:

- quote -

http://www.fairmark.com/rothira/expand.htm

Really a two year spread.

- quote -

They are figured into your quarterly estimates just like
most other income and deductions.

---
Drew Edmundson, CPA
Cary, NC

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"Perplexed" <nellplotts[at]yahoo.com> wrote:

- quote -

It's a two-year spread for conversions done in 2010 only.
The income is spread between 2011 and 2012 [sic] unless the
taxpayer elects to have the entire amount taxed in 2010.

Don't count on this still being law in 2010. On the surface
it sounds like you'd be best off to convert enough each year
to use up the 15% bracket. Before you do, check your future
state's treatment of retirement income. For example,
Illinois has an income tax but doesn't tax retirement
distributions, including conversions to Roth.

--
Phil Marti
Clarksburg, MD

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Perplexed wrote:

- quote -

I don't know who DH is, but only he can move his IRA money
into a ROTH account. (IOW, it's not your decision.)

- quote -

First I've heard of this and I kinda doubt that the feds
will be generous again. In fact I'm surprised that congress
hasn't closed the "loophole"; but then again, I'm really
happy they haven't. Yet.

- quote -

Should be paid for that quarter in order to avoid penalty.

ChEAr$,
Harlan Lunsford, EA n LA

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DH is 68. We live in a state with no income tax but will be
moving in a couple years to one with an income tax. I am
considering moving some of his regular IRA money to his
Roth. Our current tax bracket is 15%.

Somewhere I heard that the Feds were going to offer another
3-year averaging for Roth conversions? If true could you
link me to the details?

Along that line, when a Roth is converted are the taxes to
be paid in the quarter the conversion happened or at the
time the return is filed (no sense getting an underpayment
penality).

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