Calculate basis for immediate tax savings

Many of the individuals in California who have invested money in retirement assets for a number of years are considering converting an existing individual retirement account (IRA) or taking the required minimum distributions to a Roth IRA. Tax practitioners who evaluate the taxation of these retirement distributions under California non-conformity tax laws can reduce the amount of taxes their clients must pay on such distributions. Basis for such calculations arise when a federal deduction exceeds the allowable California deduction for retirement contributions. For example, taxpayers who have made for federal purposes the maximum IRA contributions allowable by law each year will have California basis in their IRAs.
Our clients have been putting money into retirement assets for a number of years. Now many clients are taking required minimum distributions or contemplating the rollover of an existing Individual [...]