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Subject:  Non-Deductible Traditional IRA ?'s Date:  5/17/2012  8:12 PM
Author:  ferjen Number:  116151 of 127536

Over the years, our hard work (more my spouse's hard work than mine :-) ) has pushed our income up to a point where we can no longer contribute directly to a Roth IRA. So, begrudgingly, we funded a non-deductible Traditional IRA for each of us for 2012. To my surprise, it looks like we can convert the Traditional IRA's into Roth IRA's.

So, my questions are as follows:

1. We've never had Traditional IRA's before. The $5K sitting in each account we just opened a few weeks ago is it. As I understand it, we can convert those accounts to Roth IRA's with no taxes due because there have been no gains on the money. Is this correct?

2. Can we convert immediately or do we have to wait some prescribed time? Is there any reason we should wait?

Thank you for your help.

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