2012 Reporting of 2010 Roth Rollovers and Conversions

In 2010, did you:

• convert (transfer) amounts from a non-Roth IRA to a Roth IRA,
• roll over eligible distributions from a retirement plan (other than an IRA-based plan) to a Roth IRA, or
• do an in-plan Roth rollover (after September 27, 2010)?

If yes, you were required to report half of the taxable amount of your 2010 Roth rollovers and conversions on your 2011 tax return and now must report the remaining half on your 2012 return, unless you:

• elected to include the entire taxable amount of your rollovers or conversions in your 2010 income by filing a 2010 Form 8606, Nondeductible IRAs (instructions), and completing Part II, Part III or both, as applicable, and checking the box on line 19, the box on line 24, or both;
• recharacterized your 2010 Roth rollover or conversion (in-plan Roth rollovers can’t be recharacterized); or
• received a distribution in 2010 or 2011 of any of the taxable amount of your rollovers or conversions (in which case, you may have to report an amount other than half on your 2012 tax return).

No distributions in 2010 or 2011

If you didn't receive a distribution in 2010 or 2011 of any amount of your 2010 conversion to a Roth IRA, you must report the amount from line 20b of your 2010 Form 8606 on line:

• 15b of your 2012 Form 1040, U.S. Individual Income Tax Return; 
• 11b of your 2012 Form 1040A, U.S. Individual Income Tax Return; or
• 16b of your 2012 Form 1040NR, U.S. Nonresident Alien Income Tax Return.

If you didn't receive a distribution in 2010 or 2011 of any amount of your 2010 rollover to a Roth IRA or 2010 in-plan Roth rollover, you must report the amount from line 25b of your 2010 Form 8606 on line:

• 16b of your 2012 Form 1040;
• 12b of your 2012 Form 1040A; or 
• 17b of your 2012 Form 1040NR.

2010 distributions

If you received a distribution in 2010 of any of your 2010 rolled over or converted amounts, on your 2010 tax return:

• you would have reported the amount of distributions; and 
• you may have included the remaining non-distributed amount of your 2010 rollover and conversion in your 2010 gross income if the remaining amount was less than half of your total 2010 rolled over and converted amounts.

If, after your 2010 distribution, the remaining non-distributed amount was not more than half of your total 2010 rolled over and converted amounts, you:

• would have reported half of the non-distributed amount on your 2011 tax return; and
• must now report the remaining taxable amount of your 2010:
  • conversions to a Roth IRA on line 15b of your 2012 Form 1040 (line 11b of Form 1040A or line 16b of Form1040NR), and
  • rollovers to a Roth IRA and in-plan Roth rollovers on line 16b of your 2012 Form 1040 (line 12b of Form 1040A or line 17b of Form 1040NR).

You can use the following worksheets to calculate the amount to report on your 2012 tax return if you had 2010 distributions but no 2011 distributions for: 

• Conversions, the 2012 Taxable Amount Due to a 2010 Conversion to a Roth IRA - Worksheet in chapter 2 of the 2012 Publication 590.
• Rollovers, the 2012 Taxable Amount Due to a 2010 Roth IRA Rollover - Worksheet under Rollovers in Publication 575.
• In-plan Roth rollovers, the 2012 Taxable Amount Due to a 2010 In-Plan Roth Rollover - Worksheet under Rollovers in Publication 575.

2011 distributions

If you received a 2011 distribution of any amount of your 2010 Roth rollovers and conversions, you may have included in your 2011 gross income all or some of the taxable amount that you would have otherwise included in your 2012 income. To determine the amount you had to report in 2011, you would have completed the 2011 Form 8606 (instructions):

• Part III, line 36, shows the amount you should have reported on your 2011 tax return for distributions from a Roth IRA; and
• Part IV, line 46, shows the amount you should have reported on your 2011 tax return for distributions from a designated Roth account.

You would now determine the remaining taxable amount to report on your 2012 tax return by referring to your 2011 Form 8606:  

• Part III, line 38, for 2011 Roth IRA distributions; and
• Part IV, line 48, for 2011 designated Roth account distributions.

You would report the remaining taxable amount of your 2010:

• conversions to a Roth IRA on line 15b of your 2012 Form 1040 (line 11b of Form 1040A or line 16b of Form1040NR); and
• rollovers to a Roth IRA and in-plan Roth rollovers on line 16b of your 2012 Form 1040 (line 12b of Form 1040A or line 17b of Form 1040NR).

2012 distributions

Any distributions you received in 2012 from your Roth IRA or designated Roth account don’t affect the amount of your 2010 Roth rollovers and conversions that you must report in 2012. To determine the amount and how to report the amount of your 2010 Roth rollovers and conversions on your 2012 return, follow the instructions above depending on whether you:

• didn’t receive any 2010 or 2011 distributions;
• received a 2010 distribution; and
• received a 2011 distribution.

If you only received qualified distributions (other than a qualified first-time home buyer distribution from a Roth IRA) in 2012 from your Roth IRA or designated Roth account, you don’t have to report these distributions (because they aren’t taxable). However, you must still report the remaining taxable amount of your 2010 Roth rollovers and conversions on your 2012 return.   

If you received a 2012:

• Nonqualified distribution from a Roth IRA (or a qualified first-time home buyer distribution), complete the 2012 Form 8606 and follow the instructions to add the taxable portion of your distribution to the remaining taxable amount of your 2010 conversion or rollovers to a Roth IRA and report the total on the appropriate lines of your 2012 income tax return.
• Nonqualified distribution from a designated Roth account, add the taxable portion of your distribution to the remaining taxable amount of your 2010 in-plan Roth rollover and report the total amount on line 16b of your 2012 Form 1040 (line 12b of Form 1040A or line 17b of Form 1040NR).

Additional Resources

• 2011 reporting of 2010 Roth rollovers and conversions
• Topic 413 - Rollovers from Retirement Plans
• Notice 2009-75, Rollovers from Employer Plans to Roth IRAs
• Notice 2010-84, Guidance on In-Plan Roth Rollovers