For the last two years I have made contributions to a traditional IRA but was not eligible for the tax deduction. Next year our household will see an income increase (my wife id returning to work) and I am considering converting my traditional account to a Roth before year end. My TD Ameritrade rep told me that he thinks I will have to pay tax on the amount rolled despite having paid the tax once already. I seem to recall being told otherwise last year when I inquired about this -- that the amount was recorded as a post tax contribution and therefore would convert without an additional tax liability. There's a reason all brokerages tell you not to rely on them for tax advice, but in this case it's not my usual snarky "they don't know their butts from second base," but rather no broker can answer this specific question. They simply don't have enough information at hand. Nor do we.So, do you have any other traditional IRA accounts, including rollovers, SEPs and SIMPLEs? Were any deductible contributions made to the account you're asking about?Once we know that we can tell you the tax consequence of conversion.PhilRule Your Retirement Home Fool
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