Hi - I’m planning on converting my IRA into Roth. Im holding 2 stocks and some cash in there. I know that I don’t need to liquidate the stocks in order to convert. But could you help me understand if the conversion tax will be based on the value of the stocks as of conversion date? I would hope that is the case (and tax is not based on the value of the stock at the end of 2021 for example).
Thanks.
Hi Mindi,
From what I know, even if it was on a different type of security and not stocks, the tax you’ll pay is on the value at the time of the move.
I would suggest to check with the broker you are moving to, since they will be the ones issuing the 1099 next year.
I asked the brokerage yesterday, and they said to ask my tax consultant that question - which I thought was a little ridiculous lol. But thanks Fernando!
To make you feel better, when I called Vanguard, about getting a 1099 or not for the different accounts I have, they were also like …huuuhhh…hhhmmmm, hahahahaa, remember we call into a customer support line, most of what they know is about the platform. So yes, better go to the actual TAX experts 