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You are working with a client, Lorelai.Lorelai is expecting her business income to increase dramatically next year. Therefore,Lorelai is considering converting the entire balance of
You are working with a client, Lorelai.Lorelai is expecting her business income to increase dramatically next year. Therefore,Lorelai is considering converting the entire balance of her traditional IRA--currently $8,000--to her Roth IRA this year.
All of Lorelai's IRA contributions were previously deducted. Her expected taxable income as a single taxpayer is $80,000. By what dollar amount would the conversion likely increase her federaltaxesthis year if her marginal tax rate were 22%?
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