Many people took advantage last year of a change in the law that allowed high-income workers to convert a traditional IRA to a Roth IRA, which permits tax-free withdrawals in retirement. A conversion, though, triggers a tax bill on the amount being converted.For conversions done last year only, taxpayers had the option of splitting the tax bill over their 2011 and 2012 returns. This will be the first year they have to pay the tax on that, says Bob Meighan, vice president of TurboTax. Make sure you are aware of it and have the money available when it becomes due.
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