Check Your State’s Tax Law Before Converting An IRA

Before converting a traditional IRA to a Roth IRA, residents of states with income taxes should review how their states will treat the transactions.

Under federal tax law, the owner of a traditional IRA can roll over some or all of the account to a Roth IRA. The amount rolled over will be included in gross income, to the extent of its pre-tax contributions and earnings, as though it were distributed.