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Subject:  Rolling IRAs into Roth IRAs Date:  8/19/1997  1:25 PM
Author:  planojake Number:  193 of 127745

1. I've read that a "Taxpayers" AGI must be less than $100k to allow a rollover from an existing IRA into a Roth IRA. Elsewhere there are specific references to single and joint filer limits, on rollovers I've only seen the $100k limit. Is the limit the same for Joint & Single filers, or can joint filers have a higher AGI and still take advantage of the ability to roll existing IRAs into a Roth IRA?

2. Can the taxes due on a rollover from a regular IRA to a Roth IRA be paid from the distribution without penalty? In other words, can you take your $10,000 IRA distribution, pay $2,800 in taxes and then establish a Roth IRA with the remaining $7,200 with no early distribution penalty? Does the answer to this question differ if there is enough non-deductable basis in the current IRA to cover the taxes?



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