hard · Certified Financial Planner Investment Planning
The Parnell household has two traditional IRAs: one with 180,000 of pre-tax contributions and one with 20,000 of after-tax (basis) contributions. They wish to convert 50,000 to a Roth IRA.
What is the taxable amount of this conversion according to the pro-rata rule?
- 0; conversions of after-tax basis are always non-taxable.
- 30,000
- 50,000
- 45,000
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