Roth conversion
Glossary · Tax concepts
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Definition
Moving money from a pre-tax retirement account to Roth. The pre-tax portion of the converted amount counts as ordinary income in the conversion year.
Converting $50k from a traditional IRA adds $50k to this year's taxable income, but the money grows tax-free from then on.
These definitions describe how ArthaPilot uses each term. For authoritative definitions, consult the SEC, IRS, or a qualified financial advisor.