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Can I pay taxes on my Roth IRA conversion in installments?

April 12, 2006

Date:  Wed, 22 Mar 2006
From:  Clarence

I converted nearly all of my retirement savings into a Roth IRA in 2005.

May I pay my taxes in four annual installments, or was that rule only for conversions in 1998?

Thank you, sir!

Clarence

Answer

Date:  Mon, 03 Apr 2006

Hello Clarence,

The ability to pay income taxes on a Roth conversion in four installments is no longer available. It only applied for conversions made during 1998.

Good luck!
Mike Gray

For more information about Roth and traditional IRAs, buy our book: How to use Roth & IRA accounts to provide a secure retirement, 2012 Edition!

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