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I'm new to this group.

I have a traditional IRA (I'm 54) and have been wondering if it is wise to convert or not. I would have to pay approx $16,000 over 4 years) to convert. THis would leave my IRA earning tax free money...but it would mean that I am taking $16K out of circulation. I can't seem to figure out what to do. Help would be appreciated.
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Rosie-
Pls check out the following website:
http://www.fairmark.com/rothira/

It's *loaded* with info, including a section on post-retirement conversions. Please take a look at some of the Roth benefits beyond the mere money amounts, such as post 70 1/2 distributions (none required) & post 70 1/2 contributions (allowed), estate plannng, etc. Enjoy.

Chris
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Greetings, rosietheriveter (you can't be THAT old!), and welcome.

<<I have a traditional IRA (I'm 54) and have been wondering if it is wise to convert or not. I would have to pay approx $16,000 over 4 years) to convert. THis would leave my IRA earning tax free money...but it would mean that I am taking $16K out of circulation. I can't seem to figure out what to do. Help would be appreciated.>>

Snootfool already pointed you to KATinChicagoland's great Roth trove. You may also be interested in perusing some of the considerations and hard numbers I laid out in this folder. You can find that information at:

http://boards.fool.com/Registered/Message.asp?id=1040013000441002&sort=postdate

There's some very good stuff there you shouldn't miss as you consider this issue. Just be aware that the conversion route isn't for everyone, and how the taxes due on the conversion will be paid is a large part of the problem.

Regards….Pixy



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