hard · Certified Financial Planner Psychology

A client has 90,000 in a traditional IRA consisting entirely of pre-tax contributions and earnings. They also have10,000 in a separate traditional IRA consisting of non-deductible (after-tax) contributions.

If the client converts $10,000 to a Roth IRA, what amount is taxable?

  1. $0, because the client converted the 'after-tax' account specifically.
  2. $1,000
  3. $10,000
  4. $9,000

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