Missouri river bottom south of Sioux City, IA | My wife and I transferred our IRAs to Roth when Roth was first made available. We took advantage of the rule allowing you to spread the taxable amount over four years. It worked out good as our tax liability was low at that time. We were adding equipment (tax write off) in order to expand the farming operation.
“In 1998, if you converted a distribution from a traditional IRA to a Roth IRA, you only included one quarter of the taxable amount in your 1998 income. You also included one quarter of the amount in each of the following three years. This rule applied if the distribution was made in 1998, even if the conversion to the Roth IRA occurred after December 31, 1998”
I don’t believe here are rules like this today to transfer an IRA into a Roth without having to pick up the full taxable amount in one year. But who knows what this next administration will come up with.
Tom N.
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Variable Universal Life Insurance the new Roth IRA
