Converting traditional to a Roth

[Jeff S.]

If you convert a rollover IRA to a Roth before April 15 which tax year is affected? Do you have a choice? Would like to be done with taxes to do tax planning and eventually move traditional into Roth on low income years.

[Dmitriy Fomichenko]

@Jeff S. 

when you convert traditional to Roth IRA you are taxed in the year of conversion. The cut-off date here is Dec. 31, not April 15th. So if you do the conversion prior to Dec. 31st you will have to declare the conversion amount as your taxable income in the year 2014. If you do the conversion after Jan. 1st 2015 - then it will count as taxable income in the year 2015 (regardless if you do this before or after April 15th).

Disclosure: I'm not a CPA and this is not a tax advise.