Roth Conversion 2010

[JON]

If in 2010 taxpayer converts his IRA to a Roth when is his taxable income increased? The tax will be paid in 2011 and 2012 - is that when adjusted gross income is increased(50%)? The reason is he wants to make some contributions he would not normally make to max out the 50% deduction.

[Lion]

See Otis' Thread

See my link posted under Otis' thread with a similar question...

[OtisMozzetti]

answer to Jon

If in 2010 taxpayer converts his IRA to a Roth when is his taxable income increased? The tax will be paid in 2011 and 2012 - is that when adjusted gross income is increased(50%)?
...
The reason is he wants to make some contributions he would not normally make to max out the 50% deduction.

The income, if any, resulting from the conversion can either all be reported immediately during 2010, or can be split equally between 2011 and 2012.

What you are thinking about "the reason" is a little unclear to me. I guess that the opportunity to spread the income over 2011 and 2012 was passed into law in order to give some extra incentive for conversions to be carried out.