Among the negative factors to consider, under the tax current rules, in evaluating the Roth conversion question is what?
A: The $100,000 MAGI threshold that limits the conversion privilege for upper-income individuals.
B: The effect that the conversion income might have a various AGI-sensitive tax item.
C: The fact that the Roth IRA will be subject to the required minimum distribution rules after the account owner reaches the age of 50.
D: The fact that a Roth IRA cannot be inherited by a surviving spouse.
| Answer is as under : |
| Option B: The effect that the conversion income might have a various AGI-sensitive tax item. |
| Reason |
| When a tax payer contribute to Roth IRA , it does not reduces his adjusted gross income. When the tax payer's AGI reduced to some extent he get eligible to claim many tax credit and also reduction is tax payable is possible |
Among the negative factors to consider, under the tax current rules, in evaluating the Roth conversion...
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