The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: IRA to Roth Taxable? Date:  2/29/2016  5:20 PM
Author:  mispoken Number:  123703 of 131280

So here is what I've been doing;

Because of IRA income limits imposed, my wife and I put $5500 into an IRA and then once funds have settled, we do the conversion right to the Roth IRA. That's it. Other than that my IRA accounts remain at a zero balance. I do have employer 401k contributions but have not taken distribution on any of those.

There is an 8606; under line 15 it lists a taxable amount; which brings me back to my question. If line 15 says taxable amount why am I being taxed on that amount when I've already paid taxes on that money as an employee wage. I never took a deduction for an IRA contribution.

It seems like the amount should be entered into line 8; "Enter the amount you converted from traditional to Roth IRAs" Nothing on page 2 of the 8606 is entered.

I see what you mean when you say there are a lot of moving parts; I was just under the impression that if post tax money was put into an IRA and converted to a Roth, that wouldn't be a taxable event provided no deduction was taken on the original contribution that was converted.

Thanks for the quick response!

Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us