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Subject:  Re: 401k distribution Date:  1/9/2004  1:24 PM
Author:  JAFO31 Number:  38439 of 78168

baldguy13: {{{{"So, when you convert a traditional IRA to a Roth IRA, the tax dollars have to come from another source? They can't come out of the traditional IRA? I no longer have the cash laying around to pay the taxes, especially if I'm going to be out of work (company screwed me big time)."}}}}

gogreengo: "The taxes don't HAVE to come from outside the IRA, but it's best if it does. If you use the money from the IRA to pay the taxes on the conversion, you're reducing the amount of money you have invested."

gogreengo is correct that there is no legal requirement that the taxes come from outside the IRA that is being converted.

WHat gggo did point out the opportunity cost issue, gggo did not point out is that