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Author: cstillwell55 Two stars, 250 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: Re: Trad IRA to Roth Conversion Date: 6/14/2008 1:51 PM
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A conversion to Roth is a distribution from your traditional IRA. When you have nondeductible (after-tax) money in a traditional IRA, a portion of each distribution is a tax-free return of that after-tax money, and a portion is a taxable distribution of previously untaxed earnings and deductible contributions. The taxable portion is calculated in Part I of Form 8606.

Thanks, let me see if I understand. Let's suppose that the IRA is 25% after tax contributions and 75% is before tax contributions and gains. I can't specify to convert just the 25% that has already been taxed so any amount converted is comprised of a 25% non-taxable and a 75% part which is taxed. Is that about right?

~Stillwell
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