Wisconsin Treatment for the Conversion of a Traditional IRA to a Roth IRA

​​The Wisconsin treatment for the conversion of a traditional IRA to a Roth IRA is the same as the federal treatment. The Wisconsin treatment applies at the same time as the federal treatment.

For taxable years beginning before 2010, a person could convert amounts from a traditional IRA into a Roth IRA if, for the tax year of the withdrawal from the traditional IRA, both of the following requirements were met:

(1) Modified adjusted gross income (AGI)for Roth IRA purposes was not more than $100,000, and
(2) the taxpayer was not a married individual filing a separate return.

For tax years beginning in 2010 and thereafter, the $100,000 modified AGI limit is eliminated and the filing status requirements do not apply. For conversions in 2010, any amounts that are required to be included in income are included in income in equal amounts in 2011 and 2012, unless the taxpayer elects to include the entire amount in income in 2010.

November 18, 2010