Compliance February 20, 2013

2010 Roth Conversions Must Be Reported in 2012

Many taxpayers will have to report some taxable income from amounts converted to a Roth IRA in 2010.

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The Internal Revenue Service (IRS) reminded taxpayers who converted amounts to a Roth IRA or a designated Roth account in 2010 that in most cases, they must report half of the resulting taxable income on their 2012 returns.

Normally, Roth conversions are taxable in the year the conversion occurs. For example, the taxable amount from a 2012 conversion must be included in full on a 2012 return. But under a special rule that applied only to 2010 conversions, taxpayers generally include half the taxable amount in their income for 2011 and half for 2012, unless they chose to include all of it in income on their 2010 return.  

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Roth conversions in 2010 from traditional IRAs are shown on 2012 Form 1040, Line 15b, or Form 1040A, Line 11b. Conversions from workplace retirement plans, including in-plan rollovers to designated Roth accounts, are reported on Form 1040, Line 16b, or Form 1040A, Line 12b.  

Taxpayers who also received Roth distributions in either 2010 or 2011 may be able to report a smaller taxable amount for 2012. For details, see the discussion under 2012 Reporting of 2010 Roth Rollovers and Conversions on IRS.gov. In addition, worksheets and examples can be found in Publication 590 for Roth IRA conversions and Publication 575 for conversions to designated Roth accounts.  

Taxpayers who made Roth conversions in 2012 or are planning to do so in 2013 or later years must file Form 8606 to report the conversion.  

As in 2010 and 2011, income limits no longer apply to Roth IRA conversions.

Deals & People February 19, 2013

BlackRock Reorganizes Fixed-Income Group

Peter Fisher, head of fixed income at BlackRock Inc., is moving to a new role in the company.

 

 

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BlackRock confirmed to PLANADVISER that an internal memo to employees announced Fisher will leave his position to join the company’s market research group as senior director at the BlackRock Investment Institute.

“Peter’s move fulfills the desire he has had for some time to take on a role that allows him more freedom from day-to-day management and expand on his role working with investors and clients more broadly across the firm,” the memo said.

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In this role, Fisher will work closely with the Institute’s Executive Director Lee Kempler and Chief Investment Strategist Ewen Cameron Watt. Fisher’s role will allow him to increase his focus on the significant investment challenges facing BlackRock’s clients and portfolio managers.  It also permits him to continue as an ambassador for BlackRock and to participate in an even wider range of external financial industry, academic and regulatory activities, the memo said.

With Fisher leaving fixed income, Rick Rieder and Kevin Holt will become co-heads of Americas Fixed Income.  Holt has been transitioning his portfolio responsibilities for several years and, having completed the transition of those responsibilities, will take on the business management responsibilities for Americas Fixed Income. Rieder, as chief investment officer for Fundamental Fixed Income, will devote his time to leading the investment side of the business and overseeing performance. 

In his new role, Fisher will continue working closely with Quintin Price, who was appointed last summer to lead the Alpha Strategies group, which includes Fixed Income as well as Fundamental Equity and Scientific Active Equity.  Fisher will also work closely with the leaders of the different fixed-income groups.

 

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