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Traditional to Roth Conversion
I converted $100k from my traditional IRA to my Roth IRA in 2023. I know I owe taxes on this money as most is non-deductible, but when I go through the Turbo Tax Easy Step (1099-R), it appears that is adds the $100k I've converted as income (which I expected), but then when I select this money as converting to a Roth, it adds it again to my state income, increasing my state (Alabama) income by $200k. With Alabama State Tax at 5%, I'm now paying 10% on this conversion. Isn't this double taxing me on the same money?
‎January 16, 2024
7:24 AM