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|Subject: Taxes on Roth conversion from gift IRA||Date: 1/30/2000 4:24 PM|
|Author: rfr||Number: 18481 of 72499|
I put this on the Tax Strategies board, but I think I might get some advice here too...
Hi everyone. I have a slightly complicated situation and I'd like a little help.
In 1996, when I turned 21, I received $2000 in a tradtional IRA as a gift from my father. I did not contribute anything for the next 3 years but I invested some of the money within the IRA. Last year (March 1999) I converted the IRA to a Roth IRA. There was about $3000 in the account at the time. Now the same Roth IRA is worth about $5000.
My question is: Because of the conversion I'm sure I have to pay some taxes, but since the original $2000 was a gift, how much do I have to pay taxes on?
Any advice or pointer to where I could find help would be much appreciated.
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