I RECENTLY (3/00)ROLLED MY 401K INTO MY EXISTING ROLLOVER IRA. I WOULD LIKE TO CONVERT A PORTION INTO A ROTH IRA FOR TAX YEAR 1999. 2 ACCOUNTANTS INDICATED THAT I CAN CONVERT MY TRADITIONAL TO A ROTH FOR TAX YEAR 1999 BY 4/17/00. BUT, MY WATERHOUSE REP INDICATES THE DEADLINE FOR CONVERSION WAS 12/31/99, AND THE DEADLINE FOR NEW CONTRIBUTION ONLY IS 4/17/00. WHO'S RIGHT?

Waterhouse is right. It's scary that accountants may be giving wrong advice on this issue.


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Barry Picker, CPA/PFS, CFP
New York, NY

If the accountants need a cite, it's in the Income Tax Regulations, section 1.408A-4, Q&A 7.

Maybe they were thinking of recharacterizations, which can be completed before the tax filing date? But not conversions, as Barry pointed out.

Thank you for the very fast reply, I appreciate the help. Regarding the deadline for 1999 conversion of a traditional to roth. Can anyone provide the specific location (Form, booklet or instruction # and page) so that I can refer my accountant to it? Again, thanks for the help, and saving me a potential tax nightmare.

The conversion deadline for any given year is Dec 31st, therefore you can not convert now for 1999. If you are getting contrary information from your accountant, you need to find a new accountant. This Roth reg is almost as basic as knowing April 17 is this years tax deadline.

The conversion deadline is mentioned in IRS documents, on the WWW.rothira.com web site, and in virtually every article ever written on the subject. Every accountant should know this info, it is not an obscure reg but a very basic Roth rule.