Question

Wesley has no basis in his traditional IRA. During 2018, he converted $20,000 of the $50,000 IRA to a Roth IRA. What amount of the conversion is taxable? O A. So O B. $20,000 OC. $50,000 O D . $70,000

Answer 1

Answert - Option (B)] $ 20,000 · As per the gåren data, traditional IRA amount = $50,000 corrented amount to Roth IRA = $20,000 when amount as converted from traditional IR A to Roth IRA , the conversion amount is SUM eb to gross income of an individual for the tax burpose : Because this amount wile thereases the therre'deal's éncome and ordinary tax rate is applicable on the commeresoon amoun'z .. As per the 401(k) , if an indrive dual can do a Roth IRA Conversion, then they are eligible to income tase on the amount they converet. Thus, $20,000 of wesley's conversion amount o's taxable: