Sharon, age 35, has a traditional IRA with a fair market value of $650,000 and a basis of $139,100. She has decided to convert her traditional IRA to a Roth IRA. What are the tax consequences? Assume her tax rate is 37%. Taxes payable $
Sharon, age 35, has a traditional IRA with a fair market value of $650,000 and a basis of $139,100. She has decided to convert her traditional IRA to a Roth IRA. What are the tax consequences? Assume her tax rate is 37%. Taxes payable $
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 44P
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Transcribed Image Text:Sharon, age 35, has a traditional IRA with a fair market value of $650,000 and a basis of $139,100. She has decided to convert her
traditional IRA to a Roth IRA. What are the tax consequences? Assume her tax rate is 37%.
Taxes payable
$
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