Roth Conversion and Cap Gains
Hello,
Currently, my income is derived from capital gains and is low enough to avoid taxes (under 40k, I believe). If I covert a portion of my TIRA to Roth, to over the 40k amount, will I then owe cap gains taxes?
thanks,
Mike
Permalink Submitted by Alan - IRA critic on Tue, 2020-11-24 20:09
Yes, that is correct, depending on how much you convert, your filing status, and what the tax rate is on your gains. If the gains are long term the rate is 0 if you do not enter the 22% bracket. The best way to determine what amount you can convert without owing tax or determining the amount of tax is to experiment with a tax program and enter different conversion amounts to see what tax bill is generated.