Did you convert to Roth in 2010?

by Joe on February 19, 2013

Normally, when you convert any retirement money to a Roth IRA, the tax is calculated and due for that tax year. 2010 was a special year. It was in 2010 that the Roth conversion cap of $100K adjusted gross income was lifted and the stampede to convert to Roth began. As an added incentive to convert, the taxpayer had an option – to claim the entire converted amount as income in 2010 or to take half in 2011 and half in 2012. If you converted in 2010, and took the two year option, consider this a friendly reminder that you should report that second half this year. If this doesn’t impact you, well, as Emily Litella used to say, ‘never mind.’

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Honolulu Aunty May 13, 2013 at 5:44 pm

I did!!! Well, my husband did. It was a really bad year in his business so there was hardly any tax consequences of converting. So glad that is over and done with, and now, because we have checkbook IRAs, we are able to buy real estate (our favorite choice) in the rent and hold fashion as well as buy and sell fashion.

I know you don’t really like real estate investing because of the landlord/tenant problems. We avoid that by having an excellent property manager. The key word here is excellent.

Mahalo for this site,

Aunty

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