Which of the following statements about converting a traditional IRA to a Roth IRA is (are)true?
I.Such conversions can be done with no income tax consequences.
II.Qualified distributions from a Roth IRA after a conversion are received tax-free.

Question

Quizplus · Accepted Answer

Statement I is false, as converting a traditional IRA to a Roth IRA does have income tax consequences. The amount converted will be considered taxable income in the year of the conversion. 
Statement II is true, however, as qualified distributions from a Roth IRA after a conversion are indeed received tax-free.

Which of the Following Statements About Converting a Traditional IRA