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hamilton30
Level 2

How will a Roth Conversion from a Trad IRA affect 2022 AGI? (tax liability to be paid from a taxable brokerage account)

 
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Bsch4477
Level 15

How will a Roth Conversion from a Trad IRA affect 2022 AGI? (tax liability to be paid from a taxable brokerage account)

The amounts from your conversion as well as any gain from selling brokerage assets will be added to your AGI. You will pay income tax at your marginal tax rate on the conversion. Additional tax may be assessed if you sell brokerage assets at a capital gain—generally 15% but depends on your taxable income. 

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Bsch4477
Level 15

How will a Roth Conversion from a Trad IRA affect 2022 AGI? (tax liability to be paid from a taxable brokerage account)

The amounts from your conversion as well as any gain from selling brokerage assets will be added to your AGI. You will pay income tax at your marginal tax rate on the conversion. Additional tax may be assessed if you sell brokerage assets at a capital gain—generally 15% but depends on your taxable income. 

hamilton30
Level 2

How will a Roth Conversion from a Trad IRA affect 2022 AGI? (tax liability to be paid from a taxable brokerage account)

Thanks.

How then will a Roth Conversion in an amount equal to the Standard deduction (or Itemized Deductions) affect the tax resulting from the amount converted?

VolvoGirl
Level 15

How will a Roth Conversion from a Trad IRA affect 2022 AGI? (tax liability to be paid from a taxable brokerage account)

Then you will owe tax on all your other income.   The Standard Deduction (or Itemized Deductions) is subtracted from your total income to give you the taxable income.  

hamilton30
Level 2

How will a Roth Conversion from a Trad IRA affect 2022 AGI? (tax liability to be paid from a taxable brokerage account)

Amount Converted would be considered an IRA Distribution (Other Income in TT Tax caster)?

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