Good Morning itonewbie,

Your response below appears to be up my alley so to speak but I don't see the question which prompted it. I have a client who:

distributed 94K from a 401K and paid the tax.

Put the entire funds in a non-deductible IRA.

Took out the earned income and paid tax on it

 now wants to take the 94K and contribute to a Roth.

Fidelity says its taxable. I cant imagine it's not and further allowed at that large an amount.

I am perplexed by "there is no taxable income not because its not taxable but only because there is no taxable income to recognize"

I'm sort of drowning in the weeds. Taxable yea or nay?

Can you assist?