Lstansbury
Recycles dryer sheets
Dumb question perhaps, but here I am again at the well, asking for help.
I have a low yield bonds (3%) in my Fidelity IRA. Of course, the value on the bond market is lower than par. For example purposes, say its a $10,000 Corporate bond is only worth $8,000 on the market at this time, so it is valued at $8,000. I plan on holding to maturity, so I don't care or pay much attention to that number. But....
...If I transfer these bonds to my Fidelity Roth, will the IRS look at the Roth value as an $8,000 conversion to the tax man? Or a $10,000 conversion?
Stocks that have lost value on the market do that, just wasn't sure if bonds did as well.
Thank you for any insight!
I have a low yield bonds (3%) in my Fidelity IRA. Of course, the value on the bond market is lower than par. For example purposes, say its a $10,000 Corporate bond is only worth $8,000 on the market at this time, so it is valued at $8,000. I plan on holding to maturity, so I don't care or pay much attention to that number. But....
...If I transfer these bonds to my Fidelity Roth, will the IRS look at the Roth value as an $8,000 conversion to the tax man? Or a $10,000 conversion?
Stocks that have lost value on the market do that, just wasn't sure if bonds did as well.
Thank you for any insight!
