Quote:
Originally Posted by dewilson58
Not cash dollars...............stock dollars, a/k/a current value.
You can transfer stock, depreciated or not, that you hold in a traditional individual retirement arrangement or qualified retirement account into a Roth IRA.
When you convert a qualified account to a Roth IRA, you create taxable income in the conversion year. The income is taxable at your marginal rate. The taxable amount is the current value of the assets transferred, excluding any nondeductible contributions. The IRS has you value the conversion equal to the amount of taxable income you would create had you simply withdrawn the proceeds rather than converting them into a Roth IRA.
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Don’t know how old you are. Not my business. But I do not regret having done it in my younger days. Having to get past RMDs and then add it on on top makes it not as much fun to do.
Boomer