Taxpayers who reported 2010 Roth conversions reminded to report half of income on 2012 returns

The IRS has issued a reminder to taxpayers who converted amounts to a Roth IRA or designated Roth account in 2010 that they must report half of the resulting taxable income on their 2012 returns. A special rule allowed taxpayers to include half of the taxable amount of the Roth conversions in their income in 2011 and the remaining half for 2012, unless they opted to include all of the income on their 2010 tax returns instead. Roth conversions from traditional IRAs are shown on Line 15b on the 2012 Form 1040, or on Line 11b on the 2012 Form 1040A. Conversions from workplace retirement plans, including in-plan rollovers to designated Roth accounts, are reported on Line 16b, 2012 Form 1040, or on Line 12b on 2012 Form 1040A.

Source: IR-2013-21, February 19, 2013.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer’s Benefits Reports.

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