Hi, I want to rollover my old 401k to my roth ira before April 2017, this will be a tax event, on which tax year should i report this?

[nehzxiao]

- I have 401k from my previous employer, and i have left the job on Aug 2016, and as today I want to rollover my 401k to my traditional IRA then convert traditional IRA into Roth IRA, I did aware that converting from traditional into Roth is a tax event; the question was if I complete these processes before April 15. 2017, on which tax year return I will be taxed on for this rollover? 2016 or 2017? 

- another question, I made less than $27,000 in 2016, will be filing as Head of Household. Would i still be able to put $ 5,500 into my roth IRA account and the whole 401k rollover I will be doing from my first question will not have effect on that right ?

[AmyT · Accepted solution]

Any rollovers done in 2017 will be included in your 2017 tax returns.

The April 18, 2017, IRA deadline is for making a contribution to be counted as a 2016 contribution.

You rollover does not affect the amount you can contribute to an IRA - see https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-li....  This page also discusses contribution limits if you are also able to participate in an employer-sponsored retirement plan.  Based on the information you have provided, it does appear that you are eligible to make the full $5,500 Roth contribution.  You are, in fact, able to make the maximum Roth contribution on or before April 18, 2017, as a 2016 contribution and then make another contribution for 2017 (assuming your income still falls within the guidelines).