Is Roth IRA conversion (converting from traditional to Roth IRA) considered income available for child support in Pennsylvania?

Asked about 2 years ago - Philadelphia, PA

2010 Roth IRA conversion, where 50% of the IRA balance is reflected as taxable income in 2011 and 50% in 2012.

Attorney answers (1)

  1. Curtis Lamar Harrington Jr

    Contributor Level 20

    1

    Lawyer agrees

    Answered . A conversion takes an asset from pre-tax to post tax. The asset does not change, but you are taxed on it. You have to take other money and pay the tax.

    A one-time conversion should not be the same as describing a source of income upon which a computation should be made to may any sort of meaningful impact on a regular income stream from which a governmental / child / other support obligation is computed.

    If the person finds $1, he is supposed to report it and take it into income. However, should a one-time event affect a computation that is supposed to be performed as to a SUSTAINABLE stream of income?

    Would doing this make ANY sense? Even if it were a $100,000 conversion, its not an income stream, AND its a one shot event.

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    Curt Harrington
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    Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal... more

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