Conversion to Roth
Over past years I have a total of traditional IRAs that I was able to deduct the monies from my taxable income. My deductions were 50K and the current value of the IRAs is 80000. This year I can not deduct any monies from my 6000 contribution to this years traditional IRA. Thus the cost of 6000 can be accounted for when future withdrawals are made. If I convert this 6000 to a Roth what is my tax on conversion of this years 6000? Is it tax on 6000 which I paid or does the traditional IRAs of 80000 affect this calculation ( contributions 50000 plus appreciation of 30000)?
Permalink Submitted by Stanley Sakol on Tue, 2013-03-26 15:03
see my question filed
Permalink Submitted by Stanley Sakol on Tue, 2013-03-26 20:52
What do you want as a comment?????
Permalink Submitted by Alan - IRA critic on Tue, 2013-03-26 20:15
If you make a non deductible contribution of 6k and then convert 6k, all your non Roth IRA values are included for purposes of the taxable amount calculation done on Form 8606. You would also report a non deductible contribution on Form 8606. The result of the calculation is that 6/86 (7%) of your conversion would be non taxable. 420 would be non taxable and 5,580 would be taxable. The income limit for a Roth contribution is higher than for the deduction, so you may be able to just make a 6,000 regular Roth contribution instead of a non deductible TIRA contribution.
Permalink Submitted by Stanley Sakol on Tue, 2013-03-26 20:43
answer?
Permalink Submitted by Stanley Sakol on Tue, 2013-03-26 20:47
Overpast yearsI have total oftraditional iras etc is the start to my question
Permalink Submitted by Stanley Sakol on Tue, 2013-03-26 20:48
Overpast yearsI have total oftraditional iras etc is the start to my question
Permalink Submitted by Stanley Sakol on Tue, 2013-03-26 20:54
Over past years I have a total of traditional IRAs that I was able to deduct the monies from my taxable income. My deductions were 50K and the current value of the IRAs is 80000. This year I can not deduct any monies from my 6000 contribution to this years traditional IRA. Thus the cost of 6000 can be accounted for when future withdrawals are made. If I convert this 6000 to a Roth what is my tax on conversion of this years 6000? Is it tax on 6000 which I paid or does the traditional IRAs of 80000 affect this calculation ( contributions 50000 plus appreciation of 30000)?
Permalink Submitted by Stanley Sakol on Tue, 2013-03-26 20:58
What is reply?