Rolling IRA into a Roth

[MargaretMort]

Client had an IRA through work, company wanted to not fund any more so she rolled it into a Roth. I can't seem to get the 2010 tax showing on the 8606 to add into the taxes for the rest of the income. Come to think of it, I don't see the IRA income on line 15-b.

As I understand it, the client had no basis in the IRA so the income should be fully taxable, the only thing is whether to pay all the tax owed this year or split it with next year paying half. So far I have worked through the 8606, all the figures are there but nothing is transferring to the 1040.

As always, any and all help is so very much appreciated. I am sure the answer is a very simple one but I can't find it. MM

[Kea]

If you go the split route, it splits the amount between 2011 & 2012, so none would show up on current 2010 return.

I'm not using ATX this year, so I can't tell you where the declaration is made. Taxworks defaults to splitting it. If you want to include it in 2010 income, there is a checkbox on the 8606.

[Gail in Virginia]

ATX works the same way. I think the check box is on the top of the page, above the form, on page 1 of the 8606. If you want to count it all this year, you mark the box. If you do nothing the program assumes that you are splitting it half in 2011 and half in 2012.

[MargaretMort]

The old saying of "There are none so blind as those who will not see" fits me only I saw the dates, just didn't put them into context. Thanks to both of you for your help. MM