Conversion from pre tax to ROTH IRA retirement tax implications.

mcdyess18
mcdyess18 Member Posts: 3 Newcomer
edited December 15 in Retirement Income

how much is the percentage tax implications of the federal and NJ state to made a conversion of US$10,280 pre tax to ROTH IRA for the 2025.

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Answers

  • mcdyess18
    mcdyess18 Member Posts: 3 Newcomer

    thank you for reply. Do you know the percentage tax from federal and Nj state because of the conversion?

  • MatthewD
    MatthewD FreeTaxUSA Admin, FreeTaxUSA Agent Posts: 692 image
    Hello mcdyess18,

    I can't provide the specific percentage or dollar amount you'll owe on your Roth conversion, as this depends on your total income, filing status, and other deductions for the year.

    Here's how it typically works:

    Federal Tax:
    The $10,280 conversion is added to your ordinary income for 2025 and taxed at your marginal tax rate. For 2025, federal tax brackets range from 10% to 37% depending on your total taxable income and filing status. The conversion amount will be taxed at whatever bracket(s) your income falls into.

    New Jersey State Tax:
    New Jersey also taxes Roth conversions as ordinary income. NJ has progressive tax rates ranging from 1.4% to 10.75% depending on your income level and filing status.
  • mcdyess18
    mcdyess18 Member Posts: 3 Newcomer

    great and solid information. Thanks

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