Delay Reporting of IRA Roth CD Conversion

chantchic
chantchic Member Posts: 1 Newcomer
in Live Q/A Event

I will open an IRA Roth CD with $500 minimum deposit with a 1-time additional deposit in first 60 days prior to the next Fed Meeting on 12-17-24.
My IRA Traditional CD matures on Dec 28, 2024 with a 10-day renewal grace period. On Jan 3, 2025 I will convert the IRA Traditional CD to the IRA Roth CD.
I would include the $500 on my 2024 tax return. Can I choose which year to claim the Jan 3, 2025 conversion?  I would like to delay reporting the conversion until my 2025 tax filing.

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Best Answer

  • AlexO
    AlexO FreeTaxUSA Agent Posts: 102
    Answer ✓

    chantchic,

    That is a great question!

    If the conversion occurs in 2025, it must be reported on your 2025 tax return. You cannot choose to report the tax from the conversion on your 2024 return, but the actual conversion itself on your 2025 return.

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