Apr 8

Question by clash_of_civilizations: How do I calculate taxes when converting a Traditional IRA with TIPS to a Roth IRA?
I have a traditional IRA which contains TIPS (treasury inflated protected securities). How do I calculate taxes when converting the IRA to a Roth IRA?

Best answer:

Answer by Robert B
TIPS has nothing to do with it. You are converting dollars put away before paying taxes to dollars put away after you pay taxes. Figure out your tax rate and multiply by the amount in the IRA. Can get gruesome. Why convert??? Your tax impact should be less when you retire and you withdraw your money at 70 and 1/2.

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