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 has no expected need for distributions after retirement due to significant other investment accounts and a pension from work
C) The taxpayer expects lower tax rates in the future.
D) The taxpayer plans to continue working part-time into her seventies and would like to continue contributing to an IRA.
C) The taxpayer expects lower tax rates in the future.
The taxpayer would pay a higher taxes today on the conversion instead of lower taxes in the future when the traditional IRA is distributed.
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