Related Posts
Lagta hai koi naya noob aaya hai
Product base company vs service Based?
Additional Posts in Personal Investment Chatter
Any thoughts on ARKK and MGK ?
Mention your top 3 stocks
Are there any ETFs for blockchain companies?
What are some good stocks to buy today?
New to Fishbowl?
unlock all discussions on Fishbowl.
A conversion is a taxable event. However when you file taxes you should file a 8606 that shows the traditional contribution was nondeductible and will have basis for the 6k. Therefore the amount of tax on the conversion will be 0. If you got a deduction for the traditional contribution you will pay tax on the conversion but it will net to 0 with the deduction
I should add that if you get a deduction for your contribution to traditional and convert in the next year, you will get the deduction and income included the next year. For example if you make a deductible contribution for 2021 now and immediately convert, you will have a 6k deduction in 2021 and 6k of income in 2022. This all assumes you can deduct