Thursday, December 22, 2011

Double taxation during Roth IRA conversion.?

There should be no double taxation issue with this conversion. Unless your original IRA contributions were nondeductible contributions, you would have taken an adjustment to income in 2004 for the amount of your original contributions. Thus, those contributions were not taxed. If they were nondeductible contributions, they would be considered part of your basis and again would not be taxed.

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