Ask Paula: My Dad Died, and My Mom Is CLUELESS About Finances
Afford Anything
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Is There a Choice Between Earned Income and the Conversion?
Ida: What is referred to for tax purposes as earned income, meaning income that you've earned this year during this tax period. I would ask a question about the emergency fund first, because she might end up having to take on debt if she uses this money to pay the tax instead of leaving it for a time when she's not going to have any income. Ida: The conversion between the two options that you outlined or the conversion is the only option that you're eligible for,. There is no choice. You can only make new contributions with what is referred to as earned income.
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