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Does Roth Conversion create investment income
I do know Roth conversion creates strange revenue, however not earned revenue. It isn’t clear to me if the strange revenue created is taken into account funding revenue. I do not need to push my funding revenue up by doing a Roth conversion. Any perception is appreciated.
Re: Does Roth Conversion create investment income
If you’re referring to funding revenue for NIIT functions, I do not suppose so. The directions for kind 8960 ought to make clear that.
Once you uncover that you’re using a lifeless horse, the most effective technique is to dismount.
Re: Does Roth Conversion create investment income
As I perceive, in a Roth Conversion, one could have a conventional IRA distribution. This distribution is taken into account as strange revenue. This strange revenue will probably improve the tax bracket. My query is that if this distribution is taken into account funding revenue.
There should not be any capital good points or dividends in a Roth Conversion proper?
Re: Does Roth Conversion create investment income
frugalor wrote: ↑Thu Aug 29, 2024 10:43 amAs I perceive, in a Roth Conversion, one could have a conventional IRA distribution. This distribution is taken into account as strange revenue. This strange revenue will probably improve the tax bracket. My query is that if this distribution is taken into account funding revenue.
There should not be any capital good points or dividends in a Roth Conversion proper?
No, it’s handled as strange revenue (Line 4b)
Once you uncover that you’re using a lifeless horse, the most effective technique is to dismount.
Re: Does Roth Conversion create investment income
I’m truly attempting to determine for Earned Earnings Tax Credit score (EITC). An excessive amount of funding revenue will disqualify EITC.
Re: Does Roth Conversion create investment income
frugalor wrote: ↑Thu Aug 29, 2024 10:43 amAs I perceive, in a Roth Conversion, one could have a conventional IRA distribution. This distribution is taken into account as strange revenue. This strange revenue will probably improve the tax bracket. My query is that if this distribution is taken into account funding revenue.
There should not be any capital good points or dividends in a Roth Conversion proper?
The reply is NO.
Despite the fact that Roth conversion will increase your AGI, it’s not thought of funding revenue.
Re: Does Roth Conversion create investment income
“Is my Roth Conversion revenue topic to Internet Funding Earnings Tax surcharges?”
As others have famous, the reply is not any. Neither can be T-IRA payouts for private revenue wants past RMDs. Earnings tax, sure. NIIT, no.
