Making Taxes Less Taxing!

For the tax period of 2010, income limits no longer apply to rollovers or conversions to Roth IRAs from other retirement plans. However, unlike 2010 conversions, all of the income resulting from a 2011 conversion would be included on the 2011 return. See Form 8606 and its instructions for details.

If you elected a 2010 conversion, only half of the resulting income would be included in income in tax year 2011 and the other half is reported in 2012, unless you chose to include all of it in your income for 2010. If you did not make this choice, report the taxable amount on either Line 15b or Line 16b of Form 1040 for 2011. See the instructions to Form 1040 for details.

For More Information:

Form 8606 Non Deductible IRAs

Instructions For Form 8606, Nondeductible IRAs

Instructions For Form 1040