- posted 9 years ago
I am considering converting my trad ira to a roth ira and I am trying to estimate how that will impact my taxes. Below is what I think I know and what I am trying to do to estimate the tax impact.
I believe that I will be paying tax on the full balance of my trad account (of course I will confirm this before proceeding) so I used that balance and added that to my taxable income for my 2009 tax return (using turbo tax) and noted the change in my tax refund as calculated by turbo tax. My ASSumption is that I can use this as a rough guide in estimating the tax impact of this conversion.
Of course I realize that this is not exact, in 2010 I will have some variations in my income and taxes, but will this provide at least a rough estimate in how converting my traditional ira to a roth ira will impact my 2010 taxes?
If there is a better (but still easy) way to estimate the tax impact of this conversion please let me know.