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Author: larsips Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76080  
Subject: Cash Balance rollover Date: 12/18/1999 2:00 AM
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I recently took my retirement in a cash balance and rolled it into a conventional IRA. If I had rolled it into a Roth IRA instead, would I have had to pay taxes on the amount. If not,would there be any way to reverse this blunder? I understand that I would have to pay taxes on the amount if I simply converted my conventional IRA to a Roth.
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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 16546 of 76080
Subject: Re: Cash Balance rollover Date: 12/18/1999 10:03 AM
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I recently took my retirement in a cash balance and rolled it into a conventional IRA. If I had rolled it into a Roth IRA instead, would I have had to pay taxes on the
amount. If not,would there be any way to reverse this blunder? I understand that I would have to pay taxes on the amount if I simply converted my conventional
IRA to a Roth.


So far you are doing the right thing.

You can not roll money into a ROTH with out having the money in a regular IRA first. Now you can pay your tax and roll to a ROTH if you want.

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 16548 of 76080
Subject: Re: Cash Balance rollover Date: 12/18/1999 10:11 AM
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Greetings, Larsips, and welcome. You wrote:

<<I recently took my retirement in a cash balance and rolled it into a conventional IRA. If I had rolled it into a Roth IRA instead, would I have had to pay taxes on the amount. If not,would there be any way to reverse this blunder? I understand that I would have to pay taxes on the amount if I simply converted my conventional IRA to a Roth. >>

You made no blunder because you cannot transfer retirement plan money directly to a Roth IRA anyway. By law, that's not allowed. A Roth may accept rollover money only from another Roth IRA or from a traditional IRA. If the money comes from the latter, then all previoulsly untaxed money in that traditional IRA will be taxed on its conversion to a Roth IRA.

Regards..Pixy

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