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A Taxpayer Has a Traditional IRA and Is Considering Converting

Question 66

Multiple Choice

A taxpayer has a traditional IRA and is considering converting it to a Roth.Which of the following factors does not bias the decision towards the Roth conversion?


A) A high tax rate expected for the future withdrawal year compared to the tax rate in the conversion year.
B) The ability to use funds outside the IRA to pay the conversion tax.
C) A high ratio of IRA basis to IRA value.
D) All of the above factors favor the Roth conversion.

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