IRA conversion crossing year end.

Forum|Forum|2 years ago
March 6, 2024
1 reply
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I made IRA conversion from Traditional to Roth. Withdrawal was made at the end of December 2023, then the check was mailed to another financial institution, which deposited it into Roth account in January 2024. The conversion amount is taxable, but in which year? Are the rules the same for Traditional 401K to Roth IRA conversion?

Ask the Experts - MetLife III - Mar 2024

RobertB4444

Level 15

In this fun situation it will depend on what year the brokerage characterizes it. They're going to issue you a 1099-R for the withdrawal. If they issue it for 2023 then you need to get it on the 2023 return. If 2024, then 2024.

Yes, the rules are the same for any recharacterization from a tax deferred account to a Roth.

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000000000000Author

Level 2

Which brokerage will decide it? The sending or the receiving one? Anyway, it cannot be an arbitrary decision by the brokerage, right? There should be some law about this. Do you know the law?