December 31 is the final day to complete Roth IRA conversions for the current tax year. This deadline is crucial because the amount converted from a traditional IRA to a Roth IRA is included in your gross income for the year of conversion. Missing this deadline means the conversion will be counted in the following tax year, potentially affecting your tax planning and liability. Unlike contributions to traditional or Roth IRAs, which can be made up until the tax filing deadline (typically April 15 of the following year), conversions must be completed by December 31 to be included in that year's income.
#rothconversion #taxplanning #rothira #retirementsavings #ea #enrolledagent #taxprofessional #taxhelp #taxpro #onlinetaxservices #kjtax