Submitted By: someone
Answered: January 20, 2020 9:26 pm

If I convert my traditional IRA to a Roth IRA, does this create earned income?

No. The conversion triggers taxable income (the full amount of what’s in the traditional IRA if no nondeductible contributions were ever made). But the mere fact that the original contributions were based on earned income does not make the conversion income into earned income.

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Tax Glossary

At-risk rules

Rules limiting loss deductions to cash investments and personal liability notes. An exception for real estate treats certain nonrecourse commercial loans as amounts “at risk.”

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