Hi, Mariafleww,
The tax consequences of converting a traditional IRA to a Roth IRA are that the traditional pre-tax IRA balance and related earnings you are converting to a Roth IRA will be taxed to you at ordinary income rates in the year of conversion. This additional income may push you into a higher tax bracket. For example, if you are single in 2023 and had $95,375 of taxable income before the $12K conversion, you would have been in the 22% tax bracket without the conversion. However, the additional $12K of conversion-related income would be taxed at the 24% tax bracket. Here are the tax brackets for 2023.
Fidelity and Vanguard each do potentially helpful analysis on this topic. While I can't recommend either company as an Intuit employee, these may spark some questions you can return to us with. Please don't hesitate to confirm your takeaways with us and note that TurboTax is not responsible for statements other companies make.
*Please say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Regards,
Karen
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
