As I understand it, deductible IRAs converted to Roths in 1998 _must_ (not "may") take a hit against income over four years and pay taxes accordingly. What I haven't seen in the various newspapers is information about whether you can transfer part of an existing IRA. For example, if I'm sitting on a $1M IRA (dream on...), can I in fact transfer $100K of it to a Roth, and will this result in an additional $25K in taxable income for 98,99,00,01?
Greetings, TheOthermfa, and welcome.<< For example, if I'm sitting on a $1M IRA (dream on...), can I in fact transfer $100K of it to a Roth, and will this result in an additional $25K in taxable income for 98,99,00,01?>>That's correct in all aspects. You may roll part or all of existing IRAs to a Roth IRA starting in 1998. One-fourth of the amount rolled is declared as income in 1998 and each of the following three years.Regards.....Pixy
A feature article in the American Association of Individual Investors (AAII) Journal, November 1977 issue may be of help to folks trying to determine if a move to a Roth IRA is prudent. Peter James Lingane's has written an article titled, "Should You Convert to a Roth IRA? It Depends on Your Circumstances".Lowell
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