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How to Pay the Tax on a Roth Conversion - 349

Your Money, Your Wealth

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I Paid Tax on the Entire Amount of Seven Thousand Dollars

She was doing bark doroth contribution. So she wasm in after tax contributions to the ira, then converting them into a rothira. Because it was an after tax contribution, the basis was the same amount as the contribution so when they did the conversion, there was no tax. However, what happened was that they moved a four o, three b acid into an ira, which triggered the prora in aggregation rules in the conversion. And so basicallyshe said, i paid tax on the entire seven thousand dollar conversion.

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