Multiple IRA Conversion
I have two IRA’s both traditional and fully deductible. If I convert one of those to a Roth will they both be taxable or will I only pay tax on the one I converted?
I have two IRA’s both traditional and fully deductible. If I convert one of those to a Roth will they both be taxable or will I only pay tax on the one I converted?
Permalink Submitted by Alan Spross on Mon, 2012-10-08 17:30
You only pay tax on the amount you convert, regardless of which IRA you use to fund the conversion. You can also convert only part of an IRA balance, for example just the amount that will not spill over into your next higher tax bracket.
If your IRA account is large, you may be better off converting a portion each year to keep your taxes under control.