Q: I know that I must pay tax when converting my regular IRA to a Roth IRA. But do I have to pay tax on the full amount if I couldn't deduct some of the past IRA contributions? V.M., Phoenix
A: No. When you convert from a traditional IRA to a Roth IRA, you pay tax on the amount that exceeds your basis in the account. Since any nondeductible contributions you made will be added to your basis, you won't be taxed on those amounts. But earnings from nondeductible contributions are subject to tax.
- Small Business Tax Deduction Strategies No matches