JCHLi
Well-Known Member
- Joined
- Jun 28, 2020
- Threads
- 22
- Messages
- 1,535
- Reaction score
- 2,381
- Location
- Michigan
- Vehicles
- 2021 Mustang Mach-E First Edition
If you have a tax deferred retirement account, like a 401k or IRA and do not have enough tax liability in the current year to claim the full benefit you can do a Roth conversation. You'll end up "owing" the tax on the amount converted which can give you enough liability to get your full refunded tax credit. By doing the conversion, you'll get to claim the full credit (good) and benefit from the different tax advantages of the Roth later on.
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