Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Happy New year to all,

I've converted my regular to roth IRA. The old IRA had a cost basis of 17k (non-deductable contributions) and a value of 50k. Thus a total of 50-17=33k is taxable and spread out over four years. 33/4 = 8.25k per year of taxable income.

Is that 8.25k taxed at the cap gain rate (0.2 for most people, if held more than a year)?

Also, any errors with the tax basis computations?

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.