What are the Tax Consequences of Converting a Traditional IRA to a Roth IRA?
When a traditional IRA is converted to a Roth IRA, you are responsible for paying income tax on the contributions. The taxable amount that is converted is added to your income taxes and your regular income rate is applied to your total income. This is because, unlike a traditional IRA, a Roth IRA is taxed upfront and no taxes are applied to the Roth distributions.
Last modified 26 Jul 2017 16:07 EST