A Taxpayer Has a Traditional IRA and Is Considering Converting

question 1039

Multiple Choice

A taxpayer has a traditional IRA and is considering converting it to a Roth. Which of the following conditions is likely to discourage the conversion?

• A) The taxpayer has a significant tax basis in the IRA from non- deductible contributions.
• B) The taxpayer expects lower tax rates in the future.
• C) The taxpayer has no expected need for distributions after retirement due to significant other investment accounts and a pension from work
• D) The taxpayer plans to continue working part- time into her seventies and would like to continue contributing to an IRA.

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Definitions:

Rh Incompatibility

A condition that occurs during pregnancy if a woman has Rh-negative blood and her baby has Rh-positive blood, potentially leading to hemolytic disease of the newborn.

Rh Positive

Rh Positive refers to the presence of the Rh(D) antigen on the surface of red blood cells, a key factor in determining the compatibility of blood types.

Rh Negative

A blood type classification indicating the absence of the Rh (Rhesus) antigen on the surface of red blood cells.

Anti-Rh Antibodies

Immune system proteins that target the Rh factor, potentially causing complications in Rh-incompatible blood transfusions or pregnancies.