Alimony and Roth Conversion
Ex-spouse received 50% of the husband’s IRA. Her only income is alimony.
Am I correct that given these facts, there would be no tax if she converts to Roth?
TIA
Ex-spouse received 50% of the husband’s IRA. Her only income is alimony.
Am I correct that given these facts, there would be no tax if she converts to Roth?
TIA
Permalink Submitted by Alan - IRA critic on Mon, 2023-04-24 18:59
If the alimony is not taxable due to a post 2018 settlement, a Roth conversion would not be taxable until the amount converted became subject to the 10% bracket. Therefore, the non taxable amount of the conversion is limited.
Permalink Submitted by Geoffrey Kasher on Mon, 2023-04-24 19:12
Ah.. thanks