Is the two-year payment of Roth IRA conversion taxes for 2010 a one-time deal?
Yes. In 2010 only, your conversion income will be split evenly and reported on your 2011 and 2012 federal income taxes unless you elect to include the entire amount on your 2010 taxes instead (which might not be a bad idea if you expect your marginal tax rate to increase in 2011). However, you must convert by December 31, 2010, to take advantage of the 2011/2012 split.
Related Questions
- What is the deadline for completing a 2010 Roth IRA conversion if I want to take advantage of the opportunity to pay the taxes over two years (i.e., 2011 and 2012)?
- Is the two-year payment of Roth IRA conversion taxes for 2010 a one-time deal?
- How do I deal with the payment of any associated taxes e.g. income tax?
