Roth IRA conversion taxes may be trickier than you expect. Here's what to know before filing — or converting funds in 2023
Publishing timestamp: 2023-01-22 08:30:01
Summary
Tax experts say that if you completed a Roth individual retirement account conversion in 2022, your tax return may be more complicated. You need to use the "pro-rata rule" to factor your pretax IRA funds into the calculation. It is important to project your total income before converting funds in 2023. Taxpayers need to use Form 8606 to report non-deductible IRA contributions every year to establish their after-tax balance. Tax experts recommend waiting until the end of the year to make Roth conversion decisions.
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Keywords: roth iras, financial advisors, financial planners, tax planning, government taxation and revenue, internal revenue service, personal saving, tax refunds, financial planning, taxes, national taxes, s&p 500 index, wealth, retirement planning, business news, individual retirement accounts, personal finance,
Source: https://www.cnbc.com/2023/01/22/heres-how-to-report-roth-ira-conversions-on-your-taxes-.html