My income was very low this year, consequently, it looks like a good time to convert my IRAs to ROTHs. When converting a regular IRA to a ROTH, what am I taxed on?
You are taxed on the full amount converted unless your IRA had a cost basis. Your IRA would only have a cost basis if you had made nondeductible contributions or you rolled over a pension in which you had made after-tax contributions. You can convert your IRAs into Roths, if for the tax year your modified AGI is not more than $100,000, and you are not married filing separately. If you do have a cost basis in the IRA you plan to convert, you complete Form 8606 Parts I & II for the year you convert to determine the taxable amount.
Related Questions
- My income was very low this year, consequently, it looks like a good time to convert my IRAs to ROTHs. When converting a regular IRA to a ROTH, what am I taxed on?
- Is now a good time to invest in the ICICI Prudential Income Opportunities Retail-G fund?
- When is the right time to apply for Low Income Home Energy Assistance Program?
