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  • Roth conversion

    From Dennis McGuinn@21:1/5 to All on Tue May 2 11:09:06 2023
    Hello,

    I had a curious thought. I still carry a good amount of capital losses from 2008-09.

    If I convert a 401K into a Roth IRA can the carried capital loss above the $3000 annual amount be used to reduce or eliminate the total tax due from the rollover?

    Thanks,
    Dennis

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  • From ira smilovitz@21:1/5 to Dennis McGuinn on Tue May 2 11:54:38 2023
    On Tuesday, May 2, 2023 at 11:12:45 AM UTC-4, Dennis McGuinn wrote:
    Hello,

    I had a curious thought. I still carry a good amount of capital losses from 2008-09.

    If I convert a 401K into a Roth IRA can the carried capital loss above the $3000 annual amount be used to reduce or eliminate the total tax due from the rollover?

    Thanks,
    Dennis

    --

    No.

    Ira Smilovitz

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Not A Clue@21:1/5 to ira smilovitz on Wed May 3 00:12:33 2023
    On Tuesday, May 2, 2023 at 11:57:51 AM UTC-4, ira smilovitz wrote:
    On Tuesday, May 2, 2023 at 11:12:45 AM UTC-4, Dennis McGuinn wrote:
    Hello,

    I had a curious thought. I still carry a good amount of capital losses from 2008-09.

    If I convert a 401K into a Roth IRA can the carried capital loss above the $3000 annual amount be used to reduce or eliminate the total tax due from the rollover?

    Thanks,
    Dennis

    --
    No.

    Ira Smilovitz

    And I think that is because the income from conversion is Ordinary income and you can only use up to $3K/yr of capital losses to offset your ordinary income?

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From ira smilovitz@21:1/5 to Not A Clue on Wed May 3 10:53:07 2023
    On Wednesday, May 3, 2023 at 12:16:20 AM UTC-4, Not A Clue wrote:
    On Tuesday, May 2, 2023 at 11:57:51 AM UTC-4, ira smilovitz wrote:
    On Tuesday, May 2, 2023 at 11:12:45 AM UTC-4, Dennis McGuinn wrote:
    Hello,

    I had a curious thought. I still carry a good amount of capital losses from 2008-09.

    If I convert a 401K into a Roth IRA can the carried capital loss above the $3000 annual amount be used to reduce or eliminate the total tax due from the rollover?

    Thanks,
    Dennis

    --
    No.

    Ira Smilovitz
    And I think that is because the income from conversion is Ordinary income and you can only use up to $3K/yr of capital losses to offset your ordinary income?
    --

    Correct.

    Ira Smilovitz, EA
    Leonia, NJ

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)