@rghennessy wrote:
I want to minimize my tax liability. The contribution to the traditional IRA would be post tax monty (I do not qualify for the deduction). My plan is to do the rollover at the end of the year. I believe that the gains from traditional IRA is taxed as ordinary income during the conversion to roth IRA.
As long as all Traditional IRA account balances are zero at years end only the gains would be taxable income.
[Warning: do not wait until Dec 31 to do the conversion or it might not post until Jan 2, making it a 2021 conversion. The financial institutions rules in the account agreement determine which year. Every year there are some that wait until the last day only to find that they must wait a year to report it.]
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
