Author Topic: Roth Conversion Timing  (Read 712 times)

MattyP

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Roth Conversion Timing
« on: January 21, 2022, 04:41:51 PM »
We are planning a move later in the year to a different state so I was wondering about state taxes.

When doing an IRA conversion to a ROTH, how do the state taxes work?  Do you pay to the state that your reside when you make the conversion or do you pay an equal amount to each state based on the months that you live in each state?

Just curious if I should time the conversion based on the state with the lower state income tax rate

Thoughts??

Morning Glory

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Re: Roth Conversion Timing
« Reply #1 on: January 21, 2022, 05:00:15 PM »
Following.  I saw your thread title and thought it would be about market timing a Roth conversion during a dip. Your question makes much more sense

secondcor521

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Re: Roth Conversion Timing
« Reply #2 on: January 21, 2022, 08:07:55 PM »
It varies depending on the specific states involved.  I suggest reading up on the tax laws of the state you're in and the state(s) you're considering moving to as to how they each tax part-year residents (or non-residents, depending on your particular facts and circumstances).