2010 Conversions to Roth IRAs and Designated Roths: Payments in 2011 & 2012
Article ID: GEN83593
Ensuring your 2010 conversion is reported correctly on your 2011 return & 2012 return
In 2010, if you converted funds in an IRA or retirement plan to a Roth IRA, you had two choices to make:
- Pay all the tax on the converted amount in 2010, OR
- Pay 50% of the tax on your 2011 tax return and 50% on your 2012 tax return
You had the same choice if you converted funds from a 401(k) plan to a Roth 401(k) plan or funds from a 403(b) plan to a Roth 403(b) plan in 2010. The Roth 401(k) plan and Roth 403(b) plans are known as designated Roths and as in-plan Roths.
If you chose to pay in 2011 and 2012 and used TurboTax in 2010, the related amounts from your 2010 Form 8606 will transfer to 50% your 2011 tax return & 50% to your 2012 tax return . (This form is required to be filed with your tax return if you made nondeductible IRA contributions, took nondeductible IRA distributions or if you converted an IRA or retirement plan to a Roth IRA..)
TurboTax will ask you to verify the amounts that are to be taxed on your 2011 and 2012 returns.
If both you and your spouse had conversions, each of you has a Form 8606 on your 2010 tax return.
Here’s where to look on your Form 8606 to verify that the amounts are correct:
- If you converted from an IRA to a Roth IRA, see lines 20a and 20b.
- If you converted from a qualified pension plan to a Roth IRA, see lines 25a and 25b.
- If you converted a 401 (k) plan to a Roth 401(k) plan or converted a 403(b) plan to a Roth 403(b) plan, see lines 25a and 25b.
- If you took a distribution from your Roth IRA in 2010, you will also be asked to verify the amount from line 33.