Go to Jeff Salisbury LWGate Home Page.From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Roth IRA Conversion
Date: Fri, 10 Jul 1998 19:19:05 -0400
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>Is it possible to transfer the nondeductible contribution portion only of an >IRA to the Roth IRA and take advantage of the benefits of this vehicle? No. A traditional IRA to Roth IRA conversion is treated taxwise like any other trad IRA distribution, except that the 10% penalty is waived. Therefore, every dollar that comes out of any trad IRA account is part taxable and part non-taxable, in direct proportion to the ratio of total trad IRA value to total non-deductible contributions made. See form 8606 for the calculation. Rich Carreiro rlcarr@animato.pn.com P5-100/RedHat Linux 4.1 - -
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