IRA distribution into a ROTH IRA
My client has a SIMPLE IRA in his sole proprietorship with a balance of approximately $100,000. In addition to the SIMPLE he will contribute $5,500 into a non deductible IRA and immediately convert that into a ROTH IRA.
Is part of the IRA that is transferred to the ROTH IRA taxable?
Permalink Submitted by Alan - IRA critic on Thu, 2017-04-13 17:33
Per the pro rata rules, about 95% of the converted amount will be taxable. The 100k is included on line 6 of Form 8606 on which the conversion is reported.