$110.00 
Learn more
Submitted By: someone
Answered: January 20, 2020 9:26 pm
Answered: January 20, 2020 9:26 pm
If I convert my traditional IRA to a Roth IRA, does this create earned income?
No. The conversion triggers taxable income (the full amount of what’s in the traditional IRA if no nondeductible contributions were ever made). But the mere fact that the original contributions were based on earned income does not make the conversion income into earned income.
advertisement
Featured Books
Tax Glossary
Accelerated cost recovery system (ACRS)
A statutory method of depreciation allowing accelerated rates for most types of property used in business and income-producing activities during the years 1981 through 1986. It has been superseded by the modified accelerated cost recovery system (MACRS) for assets placed in service after 1986.
