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downwardspiral wrote:

<< Say I have an AGI of $30,000, and my marginal tax rate is 15%. If I roll over a $100,000 regular IRA into
a Roth IRA, am I going to pay tax on that amount at my marginal tax rate, or at 28% once I hit that bracket, and maybe even into the higher rate if I hit that. >>

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If you rollover a regular IRA into a Roth IRA in 1998, the income is recognized equally over 4 years. Thus, in each 1998, 1999, 2000, and 2001, you will report $25,000 of income from the deemed IRA distribution. So, in your hypo, you will report $55,000 in income which puts you in the 28% tax bracket.

Although you've probably heard that the TAX is spread out over 4 years, in actuality, the INCOME is spread out over 4 years.

Andrew
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