Traditional IRA to Roth IRA Conversion
As a high earner, I contributed post tax 6K into traditional IRA account. Invested it in a stock.
Can I convert the full amount (if value goes up or down, ie, either $4k or $8k) to ROTH IRA without any tax implications?
Permalink Submitted by Alan - IRA critic on Thu, 2021-08-12 02:02
This answer assumes that you have no other TIRA balance beyond this non deductible TIRA contribution. If the value goes to 8k when you convert, you will owe taxes on the 2k of gain. If the value drops to 4k you will not owe any tax and will have 2k of IRA basis left for future use that could be used to offset gain on up to 2k for a future conversion.