Explain the pro-rata rule in Roth conversions.

Explain the pro-rata rule in Roth conversions.

• A. The taxable portion of a conversion is determined across all traditional IRAs, not just the one being converted.
• B. The taxable portion is determined only from the IRA being converted.
• C. Roth conversions are tax-free.
• D. The pro-rata rule applies only to 401(k) accounts.

Answer: (A)