Roth conversion/Worker, retiree and Employer Recovery Act of 2008

[Jesse]

A client called who would like to convert a retirement account to a Roth. The financial advisor is telling them that under this act just passed the conversion can be split over two years. I can't find this to be fact.

Conversions in 2010, but not 2008. Am I missing something?

[Bees Knees]

Maybe there was in an earlier version, but the final version that was signed into law says nothing about being able to spread a Roth conversion over 2 years.

[Bees Knees]

Keep in mind that Roth conversions in 2010 can be spread over 2011 and 2012. That is old law (TTB page 13-14).

[Jesse]

Keep in mind that Roth conversions in 2010 can be spread over 2011 and 2012. That is old law (TTB page 13-14).

Thanks Bees Knees - I found that, but can't find anything to allow this in 2008. They converted the funds just over a week ago but just called me today.

[JohnH]

Don't you just love those clients who plan ahead? The could have converted half of it a week ago and the other half this Friday to achieve what they wanted,

However, I'll bet there was an excellent reason not to do that - the financial advisor wouldn't have hit his 2008 quota to earn his bonus.