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How is the taxable income allocated if the conversion of a traditional IRA to a Roth IRA occurs in 2010?

April 26, 2017allocated conversion income occurs roth ira taxable Traditional IRA

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How is the taxable income allocated if the conversion of a traditional IRA to a Roth IRA occurs in 2010?

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Unless the taxpayer elected otherwise, the taxable income generated by the conversion of a traditional IRA to a Roth IRA in 2010 is included ratably over the two taxable-year period beginning in 2011, i.e., 50% is added to income in 2011 and 50% is added in 2012. 2 The participant also could have chosen to accept all the income during 2010.