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TIRA to RIRA conversion process question

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  • TIRA to RIRA conversion process question

    I am transferring $ from TIRA to RIRA and got to this step:

    Which option do I have to choose?

     

    Converting your IRA to a Roth IRA will generally require you to pay taxes. You can elect not to withhold taxes now*.
    You have two options:


     


  • #2
    I would chose the do not withhold taxes option.  But, understand that you may actually owe taxes and will have to deal with Form 8606 when you file your personal taxes in April.  If this is a typical Backdoor Roth, then you will actually not owe tax as the money you put in the TIRA would have been nondeductible, meaning you already paid taxes on it.  You still have to report it on Form 8606 though.

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    • #3
      do not with-hold taxes.

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