A Surge of Year-End Roth IRA Conversions

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I am planning on taking advantage of a Roth conversion in which I do not have to pay the taxes on the conversion for the following two years. I've been told that, for the state return in Arkansas, I must pay the full tax this year and cannot pay it over 2 years as with the federal tax. Is that true?

Jerry Edwards of AR 1:09PM May 24, 2011

Roth 401k conversions are slower to catch on because you can only convert if you have a distributabal event. Most clients roll to IRAs when they have this option.

The surge in end of year conversions was from tax legislation passing the extended tax rates in December. People realized it was a good option to elect the deferral and perform the conversion since tax rates would not raise for those next two years.

www.cafetax.com

Joe www.cafetax.com of AZ 8:49AM February 23, 2011

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