Last-minute tax tips
Pay your Roth conversion taxes
A lot of taxpayers have taken advantage of the tax law change that now allows anyone, regardless of income, to convert a traditional individual retirement account to a Roth IRA.
But if you made such a change in 2010 when this conversion was first allowed, you have a tax task to take care of on your 2011 return. A special provision allowed individuals who moved their money into a Roth IRA in 2010 to spread the taxes due on converted amounts equally over the 2011 and 2012 tax years. The first half of those conversion taxes is due with your 2011 tax return. And make a note to put aside money to pay the remainder with your 2012 return.