Charli asks:<<Now a new question, what if I roll another additional amount from my regular IRA to my ROTH. Must this rollover adhere to the same rules, i.e. if I roll 25K this year must I wait until January, 2005 to withdraw any of it and if so how do you or the IRS keep track of what you can and cannot withdraw. This would be particularly difficult if the second rollover contained some of the same stocks that the first one did and both had appreciated substantially.>>Yes, a second Roth conversion starts a new five-year period on the amount converted. You will report the conversion on Form 8606 and the losing IRA will also provide you and the IRS a Form 1099 showing the distribution. Thus, you have two records for recording the year and the amount, and so does the IRS. The ordering of Roth IRA withdrawals means that all you couldn't take tax-free after a conversion made at age 59 1/2 or later is the earnings on that conversion. All in all, that shouldn't be a big problem.Regards..PixyRegards..Pixy
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