topic Traditional to Roth in Get your taxes done using TurboTax

Traditional to Roth

jane89 — Wed, 26 Jan 2022 20:02:21 GMT

is there any drawbacks if I were to change traditional IRA money to Roth? Didnt even know this was possible!

Re: Traditional to Roth

DanaB27 — Wed, 26 Jan 2022 20:12:15 GMT

Please be aware, if you move the money from the traditional IRA to Roth IRA (conversion) then this amount will be fully taxable income in the year you move the money. If you had a basis (nondeductible contributions) in the traditional IRA then part of the conversion will not be taxable.

Re: Traditional to Roth

jane89 — Wed, 26 Jan 2022 20:16:35 GMT

what do you mean by nondeductible contributions?

Re: Traditional to Roth

MinhT1 — Wed, 26 Jan 2022 20:21:45 GMT

Non-deductible contributions are contributions that you did not deduct from your income for limitation reasons. These non-deductible contributions are the basis of your IRA account and will not be taxed again when you receive distributions from the IRA.