When you make a Roth conversion, you add the entire amount converted to your taxable income for that year. For example, say that you convert $100,000 from your 401(k) to a Roth IRA in 2024. Your taxable income for 2024 would increase by $100,000. This means that part of making a Roth conversion is ensuring you have the cash on hand to pay the increased taxes. If you are over the age of 59 1/2, you can take that cash from the funds you are converting, which will in turn reduce your portfolio's capital. If no ...

Interactive Brokers (Nasdaq: IBKR), a global leader in automated electronic trading, has introduced new enhancements to its professional tax planning suite with the launch of Tax Planner, now available through its PortfolioAnalyst platform. The tool complements existing tax-lot matching and tax-loss harvesting capabilities, giving investors precise control over the tax consequences of their trading and investment strategies.Tax Planner enables users to create personalized tax profiles by incorporating incom ...