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laferlec

457 Distribution And Tax Reporting In Prior Year

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Can I take a qualified 457 distribution now (Jan 2010) and claim the income in 2009?

 

I am separated from a previous employer, so I will not incur the 10% penalty.

 

My plan is to use the money to pay taxes on a Roth IRA conversion in 2010 claiming the income in 2010. However, I do not want to have to pay taxes on both the 457 and IRA conversion in 2010 as it will bump me up into the next tax bracket.

 

Thoughts?

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If the distribution is made in 2009, then its 2009 tax year. If its made in 2010, its on the 2010 taxes.

I am not a tax expert, but I think your CPA would agree.

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If the distribution is made in 2009, then its 2009 tax year. If its made in 2010, its on the 2010 taxes.

I am not a tax expert, but I think your CPA would agree.

 

 

That was my thought, but I thought I would see if anyone knew any different.

Thanks.

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