DaveF1006
Expert Alumni

Retirement tax questions

You do owe tax if you converted a Traditional IRA to a Roth IRA because you transferring a plan that has pre-tax dollars to a plan that has after tax dollars. the main reason to do this is that you won't have as many restrictions in handling your Roth account like you do with the Traditional IRA. So that $6500 conversion results in a taxable event.

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