Question

kaysons is to high to make contributions to a roth ira. he would like to covert...

kaysons is to high to make contributions to a roth ira. he would like to covert his traditional ira to a roth ira .his current balance is 125000 which includes 28300 in nondeductible contributions. how much of the conversion will be subject to tax

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ty (single) would like to make a contribution to a Roth. He is 25 years old....
Ty (single) would like to make a contribution to a Roth. He is 25 years old. His AGI is $200,000. He is an active participant in a retirement plan at work. This will be his first time to make a contribution to a Roth or Traditional IRA.   What can you advise him? a. You are over the phase-out ranges for contributions to either a Roth or a Traditional IRA.  Congratulations on the high income!   b. Yes, you are eligible to make...
Both nondeductible contributions to a traditional IRA and contributions to a Roth IRA are similar in...
Both nondeductible contributions to a traditional IRA and contributions to a Roth IRA are similar in the sense that neither provides a tax deduction at the date of contribution. Which of the two types would be most advantageous to taxpayers and why? Your client is about to establish his own business and hires at least 10 employees. They ask you for advice concerning establishing a qualified versus a non-qualified retirement plan. What do you advise your client? Would your answer...
Jim, who is age 39, converts a $74,500 traditional IRA to a Roth IRA in 2015....
Jim, who is age 39, converts a $74,500 traditional IRA to a Roth IRA in 2015. He also contributes $5,500 to a Roth IRA in 2015 for the tax year 2015. If Jim takes a $4,000 distribution from his Roth IRA in 2016 when the account is worth $100,000, how much of distribution is subject to income tax and how much of distribution is subject to 10% penalty?
The Taxpayer Relief Act of Country A created the Roth IRA (A Roth IRA is an...
The Taxpayer Relief Act of Country A created the Roth IRA (A Roth IRA is an individual retirement account (IRA) that allows qualified withdrawals on a tax-free basis provided certain conditions are satisfied. Established in 1997, it was named after William Roth, a former Delaware Senator), which permits qualifying individuals to make after-tax retirement contributions of up to $2,000 annually. Contributions to a Roth IRA are not tax-deductible, but no taxes are paid on earnings generated from a Roth IRA....
Jamie is 42 years old and received a $20,000 distribution from his Roth IRA, established in...
Jamie is 42 years old and received a $20,000 distribution from his Roth IRA, established in 2009. At the time of the distribution the Roth IRA account totaled $33,748: $18,000 regular contributions, $10,000 taxable conversion contributions made in 2014, and $5,748 earnings. How much of his distribution is taxable and subject to the early distribution penalty:
One of the simplest tax avoidance strategies is to contribute to a Roth IRA, although this...
One of the simplest tax avoidance strategies is to contribute to a Roth IRA, although this may not be right for everyone. Some individuals, particularly low-income households that may be eligible for tax credits because of young children in the home, may benefit more from contributions to a traditional IRA. Here, you want to help Susan identify the best retirement savings option for her situation. Susan is 25, single, and makes $42,000 a year. Susan does not have access to...
Leo is 34 years old. He contributed $3,000 to a Roth IRA in 2014 and $2,000...
Leo is 34 years old. He contributed $3,000 to a Roth IRA in 2014 and $2,000 in 2015. In 2017, he withdrew the entire balance, which had grwon to $5,466. How much of Leo's withdrawal is taxable and subject to penalty?
Question 11 Even if you have opened and contributed to a traditional or Roth IRA in...
Question 11 Even if you have opened and contributed to a traditional or Roth IRA in the past, you can convert it (under specified conditions) into the other type of IRA. Which of these types of conversions is by far the more common: From traditional to Roth From Roth to traditional Question 12 If you expect not to spend the contents of your IRA during your lifetime and would like to leave the money to your children, you should contribute...
In 2019, Rashaun (62 years old) retired and planned on immediately receiving distributions (making withdrawals) from...
In 2019, Rashaun (62 years old) retired and planned on immediately receiving distributions (making withdrawals) from his traditional IRA account. The balance of his IRA account is $160,000 (before reducing it for withdrawals/distributions described below). Over the years, Rashaun has contributed $40,000 to the IRA. Of his $40,000 contributions, $30,000 was nondeductible and $10,000 was deductible. Assume Rashaun did not make any contributions to the account during 2019. (Do not round intermediate calculations. Round your final answers to the nearest...
One of the simplest tax avoidance strategies is to contribute to a Roth IRA, although this...
One of the simplest tax avoidance strategies is to contribute to a Roth IRA, although this may not be right for everyone. Some individuals, particularly low-income households that may be eligible for tax credits because of young children in the home, may benefit more from contributions to a traditional IRA. Here, you want to help Debra identify the best retirement savings option for her situation. Debra is 25, single, and makes $42,000 a year. Debra does not have access to...