roth conversion
I have a client who has a traditional IRA and Roth IRA. He would like to do a partial conversion of his Traditional to Roth. Will the tax be just on the amount of the conversion or will he be paying tax on the entire amount of his Traditional.
Permalink Submitted by Alan - IRA critic on Tue, 2014-03-11 19:09
He only pays taxes on the amount he chooses to convert. And if the tax bill ends up higher than he wants to pay after his taxes are calculated, he can recharacterize all or part of the conversion back to the TIRA.