During the last few months, there has been a significant decline in the stock market. Some taxpayers may find that they are paying income taxes for a value that no longer exists. The Internal Revenue Code permits a reversal to be done. It is called a "recharacterization". According to questions and answers posted to the IRS web site (www.irs.gov), the final date for the notice and transfer to be done for a 2010 Roth conversion is October 17, 2011.
Where do you report Roth conversions?
Report Roth conveersions at Part II of Form 8606.
Look at Roth Conversion again for 2010
Now that Congress passed The Unemployment Insurance Reauthorization and Job Creation Act of 2010 (HR 4853) on December 16, converting an IRA or 401(k) to a Roth looks more appealing.
Should you convert your IRA to a Roth in 2010?
This week’s interview on Financial Insider Weekly is with Hilary Martin, CFP of The Family Wealth Consulting Group. We discuss whether you should convert your IRA or taxable retirement account to a Roth account in 2010.