Can the taxes due on a Roth Conversion be spread out over multiple years?

[dmertz · Accepted solution]

No.  1998 was the only year you could do that.

[NCperson]

welll... it can be spread out if you want to pay penalties and interest and receive the rath of the IRS 😊

[Critter-3]

Sure ...just  convert a portion each tax year and not all of the balance at once.  There is no rule saying you MUST convert the entire balance in one tax year.

[NCperson]

@sroyce - while Roth Conversions can occur over multiple years, the tax related to a conversion in a specific year is due by April 15  of the following year to avoid penalties and interest.

Note that if you are subject to RMDs, you must satisfy the RMD before you can do a Roth Converstion. 

[sroyce]

As a followup question, If I convert my 401k IRA to a 401k Roth, let's say a portion of it - 50k (would pay the taxes outside of the plan) , can I still contribute to a regular Roth IRA outside of my plan?

[Critter-3]

 If I convert my 401k IRA to a 401k Roth, let's say a portion of it - 50k (would pay the taxes outside of the plan) that is a prefered method to do it to preserve the corpus in the IRA

, can I still contribute to a regular Roth IRA outside of my plan?  Of course if you otherwise qualify.   A Conversion is NOT a contribution so it doesn't affect the ability to make a contribution.

[dmertz]

"If I convert my 401k IRA to a 401k Roth, let's say a portion of it - 50k (would pay the taxes outside of the plan) , can I still contribute to a regular Roth IRA outside of my plan?"

Maybe, maybe not.  Unlike a Roth conversion from a traditional IRA, the taxable amount of an In-plan Roth Rollover is included in the MAGI for determining how much you are eligible to contribute to a Roth IRA.  If the additional $50k of MAGI moves your MAGI  above the MAGI that makes you no longer eligible to contribute to a Roth IRA, you would not be able to make a Roth IRA contribution that you otherwise would have been eligible to make.