I am looking for the correct information on Roth conversions. What I am trying to figure out is how to calculate the dollar amount when I convert for tax purposes.
Lets say I convert a stock today (30 shares) from a traditional IRA to my Roth IRA. Is this priced at the time I convert or at the end of the day. My broker is telling me its the end of the day which I thought was incorrect. Maybe for a mutual fund it’s the end of the day.
Secondly, if it is in fact the price at the time I convert is there a way to find at which price I converted so I can calculate the amount to document it for tax purposes. My history in my Roth account only shows the conversion of shares.
Conversion is not an instantaneous event, it will settle at the end of the day on which the conversion is completed (not requested, although they may be the same).
Your broker will be correct because they will calculate it for you and issue you a single 1099-R at the end of the year with the amount (along with any other conversions or withdrawals you have done).
If you are just trying to estimate for your own purposes, go with what your broker says. Or do it both ways to get a range.
If your TIRA funds are all pretax, the taxable portion is the full value of the transaction whenever its recorded. With mutual funds transaction price varies somewhat when fund recalculated net asset value at end of the day. But the change is likely to be small most days.
If for a mutual fund you might try specifying the dollar amount. If IRA and Roth are with same company, fractional share transfers may be allowed.
Thank you for clarifying this event. I always thought the transaction was instantaneous. Learned something new today. I appreciate it.