After a thorough search using Google, I'm still searching for information on this topic - what happens when I convert a regular IRA to a Roth IRA if I normally do not pay US income tax thanks to the foreign earned income exclusion? Regardless of the foreign exclusion, will I still pay tax on the converted amount? And if so, how do I calculate the tax rate (since my Adjusted Gross Income is usually zero)?
Could anyone who has done such a conversion whilst an expat please enlighten me, or point me in the right direction of information on the topic.
Thanks.