My income is lower in 2016 and with deductions I am in the 15% tax rate. Can I convert part of a Rollover IRA into a Roth IRA before April 15 to be taxed at 15% in 2016?

[scotttiger]

I noticed that my taxable income is significantly below the cut-off for the 25% tax rate. I would like to convert part of a Rollover IRA to a Roth IRA so that I can have that contribution only taxed at 15% — I think in the long term this is to my advantage. I discovered this in Feb 2017; is it too late to convert the money — i.e. did this need to be done before Dec 31 2016 or can I do this before April 15, 2017?

[macuser_22 · Accepted solution]

No.  Conversions are reported for the tax year that the conversion takes place.  A 2017 conversion  would be reported next year on your 2017 tax return.

The April 18, date is for new IRA contributions, not conversions.

[scotttiger]

Thank you for the clear and timely reply. It's a shame we don’t have these extra months; one doesn’t realize that this opportunity exists — or the exact amount one can rollover  —  until one starts doing taxes after the new year starts.