medium · Certified Financial Planner Risk Management
Mrs. Alvarez has a total of $200,000 across all her traditional IRA accounts. Of this amount, $180,000 represents pre-tax contributions and earnings, while $20,000 represents after-tax contributions. She decides to convert $20,000 of her IRA assets to a Roth IRA.
What amount of this conversion is subject to ordinary income tax?
- $2,000
- $18,000
- $0
- $20,000
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