New York Audits Couple's $200,000 Roth Conversions Over 184-Day Residency Rule
Updated
Updated · Yahoo Finance · Aug 23
New York Audits Couple's $200,000 Roth Conversions Over 184-Day Residency Rule
3 articles · Updated · Yahoo Finance · Aug 23
Summary
New York tax officials opened a residency audit on a Florida-resident couple after they converted $200,000 a year from traditional IRAs to Roth accounts while still spending long stretches in Westchester.
At issue is New York's 184-day statutory residency test and its domicile standard: keeping and heavily using the Scarsdale home could let the state treat them as full-year residents and tax the conversions.
A $200,000 conversion layered onto other income can also push modified adjusted gross income above the $218,000 Medicare IRMAA threshold, raising 2028 premiums regardless of which state claims residency.
The case underscores that licenses, voter registration and mail changes may not be enough; selling the New York home, staying under 184 days and building stronger Florida ties are key defenses in an audit.