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2010 roth conversion tax loophole

If I convert IRA to a ROth IRA in 2010, is the gain calculated on the date of the conversion then included 1/2 each year in income in 2011 and 2012, non in 2010. And is the tax then based on my tottal income in 2011 and 2012. Because if I can work in 2010 then retire, I will have no real income in 2011 and 2012 and pay almost no tax on the conversion WOW .

Asked in Taxes - 149 days ago

Tags: roth taxes 2010 ira 

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wiz oz
wiz oz
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Yes, you are right.   The biggest fear about deferring the tax to 2011 and 2012 is that what if 1. You earn more income and 2. Tax rates go up.  Sounds as if, that is not an issue with you at all.   Here's some posts I wrote on the Roth IRA Conversion that might be helpful. 

 

http://www.goodfinancialcents.com/2010-traditional-ira-to-roth-ira-conversion-tax-rules/

Answered by jeffrose at Oct 23, 2009 04:09 PM

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jeffrose
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