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Level 3
March 23, 2022
Question

Roth IRA Conversion

  • March 23, 2022
  • 2 replies
  • 38 views

My spouse contributed $6000 to 2021 Traditional IRA (in 2022) thinking that we can get a tax deduction. But now we realize that we cannot have IRA contributions deducted. Can we rollover this IRA contribution to a Roth IRA without tax implications since this amount is after tax money?

2 replies

Alumni - Intuit
March 23, 2022

The after-tax contributions to a traditional IRA will not be taxed on their transfer to the Roth IRA. But any earnings will count as taxable income at the time of the conversion.

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Level 15
March 23, 2022

Yes, but only if your spouse has no other pre-tax (tax deductible) money in any other IRA.