medium · Certified Financial Planner Professional Conduct
Parnell has 90,000 in a rollover IRA consisting entirely of pre-tax contributions and earnings. This year, Parnell makes a 7,500 non-deductible contribution to a new traditional IRA and immediately attempts to convert that 7,500 to a Roth IRA.
What percentage of the conversion is taxable?
- 10%
- 100% under the facts given in the stem
- Approximately 92.3%
- 0%
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