IRA Rollover

Archive for December, 2005

Question: IRA vs Roth IRA contributions.?

X earns $1,000,000 in 2010 and maintains a traditional IRA with $90,000 balance. X is eligible to make a taxable rollover of the traditional IRA into a Roth IRA in 2010? True or False?

Answer: True. The income limitations for Roth conversions were lifted in 2010. The conversion would be taxable, except for any converted amount attributable to the basis (non-deductible contributions), if any, in the Traditional IRA.

The taxable portion may be included in income in 2010, or split and reported, in equal shares, in 2011 and 2012.

Hope that helps.

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DISCLAIMER: While the information in this response was obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. The opinion voiced in this answer is for general information only and it shall not be construed as tax, legal, or investment advice for any individual, nor shall it be considered a solicitation for business. Questioners are urged to consult with their professional advisers before making any decisions regarding their finances.

Bradley Mann, CFP®, EA, BCE, CFS, AAMS
Certified Financial Planner Practitioner
Enrolled Agent | Admitted to Practice before the IRS
Board Certified in Estate Planning

“Providing sound retirement opportunities and tax-reduction strategies since 1985.”

Roth IRA vs Traditional IRA