IRA Conversion

Options
Pendleton
Pendleton Member Posts: 1 Newcomer
edited January 15 in Retirement Income

Is there a way to calculate the tax liability of converting my regular IRA to a Roth IRA?

Tagged:

Answers

  • AlexO
    AlexO FreeTaxUSA Agent Posts: 74
    Options

    Hello, Pendleton!

    That is a great question.

    The taxable portion of your conversion is taxed as ordinary income. Thus, the tax liability depends on the amount of your other income. You can view the tax brackets at the link below:

    https://taxfoundation.org/data/all/federal/2023-tax-brackets/

    I recommend logging into FreeTaxUSA's 2023 software and entering estimated figures for your income and conversion. The conversion is reported via a Form 1099-R.