IRA Rollover

Posts Tagged ‘rollover ira conversion to roth ira’

Question: In 2009 I am considering converting $200,000 in a Rollover IRA to a Roth IRA (I’m 44). ?

The amount converted will be taxed as income. I would not be able to pay all the taxes on this conversion by April 15, 2010. Would the IRS allow me to pay in installments over time? If so, what is this called by the IRS? (I want to do additional research on this).

Thanks,

Answer: I believe in 2010 you will be able to convert and pay the taxes over 2 years. You may want to wait until then. Also, do you meet the income limitations? Single contributors cannot make more than around $100,000. That will also go away in 2010. You certainly can convert part of it this year. Also, I think ( but am not positive check with an accountant) that you can pay the taxes out of the IRA itself–so you would have the tax money.

Charles Schwab Roth IRA Conversion Q&A: Can I Roll Over a 401(k) Into a Roth?