Tax Roth IRA conversion
Can you use an investment in Tax Credits to offset the tax due when converting a Regular IRA to a Roth IRA? If so, how to do this?
Can you use an investment in Tax Credits to offset the tax due when converting a Regular IRA to a Roth IRA? If so, how to do this?
Permalink Submitted by Alan - IRA critic on Wed, 2024-08-21 12:40
The conversion will result in taxable income and an increased tax. Most tax credits can then be applied to your total tax bill including the taxes generated by the conversion. That said, there are so many different types of tax credits now, to be sure you should check the requirements for the particular tax credit you are claiming.