Solved: Will I pay state income taxes if I rollover a Traditional IRA to a Roth IRA?
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Will I pay state income taxes if I rollover a Traditional IRA to a Roth IRA?

Curious if the amount you rollover from a traditional IRA to a Roth IRA will be taxed as income on the local and state level, in addition to the federal level?
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Employee Tax Expert

Will I pay state income taxes if I rollover a Traditional IRA to a Roth IRA?

The rollover from the traditional IRA to a Roth IRA is a taxable event on your federal taxes. The amount of the conversion is added to our current income, raising your adjusted gross income.

Most state income tax returns begin with your federal adjusted gross income. Therefore, the higher federal income amount will also result in a higher state tax owed.

https://www.irs.gov/pub/irs-tege/rollover_chart.pdf

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Employee Tax Expert

Will I pay state income taxes if I rollover a Traditional IRA to a Roth IRA?

The rollover from the traditional IRA to a Roth IRA is a taxable event on your federal taxes. The amount of the conversion is added to our current income, raising your adjusted gross income.

Most state income tax returns begin with your federal adjusted gross income. Therefore, the higher federal income amount will also result in a higher state tax owed.

https://www.irs.gov/pub/irs-tege/rollover_chart.pdf

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Will I pay state income taxes if I rollover a Traditional IRA to a Roth IRA?

Curios why this is a taxable event if your funds in an Traditional IRA are after-tax funds, then isn't just your earnings taxable.  Say I rolled over $2600 from a traditional IRA to a Roth IRA and $2500 of it was after tax dollars and $100 was tax-free earnings then isn't just the $100 added to your income? I shouldn't get taxed twice.
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