- 1). Compute the tax consequence of converting. The amount converted will be divided by two and added to your adjusted gross income over the years 2011 and 2012. This means a converted $100,000 traditional IRA will add $50,000 to adjusted gross income for your 2011 and 2012 tax returns, possibly raising your tax bracket.
- 2). Obtain a Roth conversion form from your traditional IRA custodian. Fill out the form and submit it. Your custodian will report the conversion to the IRS and send you a Form 1099 showing the amount of the conversion.
- 3). File Form 1040 in 2011 and 2012. Note the converted amount accountable for each year on line 15. File Form 8606 with the 1040 to record the basis of the Roth.
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