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rbaierwa
New Member

IF I convert a stock in a traditional IRA, that has a gain, to a Roth IRA, will that gain be considered taxable after the transfer? I know the value of the transfer is.

If the asset value of the stock / fund being converted to Roth from a non Roth account is say worth $2,000 and has a gain of $500, what will be the taxable amount of the conversion.....$2000 as income or $1500 income and cap gain of $500?
Thank you.
3 Replies
Bsch4477
Level 15

IF I convert a stock in a traditional IRA, that has a gain, to a Roth IRA, will that gain be considered taxable after the transfer? I know the value of the transfer is.

The asset is taxed on its value at the time of conversion. Capital gains is not relevant. 

Critter-3
Level 15

IF I convert a stock in a traditional IRA, that has a gain, to a Roth IRA, will that gain be considered taxable after the transfer? I know the value of the transfer is.

The total conversion amount is ALL taxed as ordinary income ... cap gains/losses are irrelevant in a retirement account.

rbaierwa
New Member

IF I convert a stock in a traditional IRA, that has a gain, to a Roth IRA, will that gain be considered taxable after the transfer? I know the value of the transfer is.

Thank you very much Critter-3. I thought that would be the case but wanted to make sure I was not missing something. Thanks again.

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