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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: of 75781  
Subject: Re: Traditional to Roth Roll Date: 2/5/1999 10:29 AM
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Greetings, McGill83, and welcome. You asked:

<<My wife has a traditional IRA, where $2300
is/was non-deductable contributions.

Can this be rolled over to a Roth
tax impact free , while leaving the rest
of what was deductable in the traditional ?>>

No, she cannot. All traditional IRA money, whether in one or multiple accounts, is aggregated to determine what part of a distribution is taxed. If you wife made $2,300 of nondeductible contributions to one or more IRAs now worth $11,500, then 20% ($2,300 divided by $11,500) of any transfer to a Roth IRA would not be taxed, but 80% (($11,500 minus $2,300) divided by $11,500) would. Thus, if she transferred $2,300 to a Roth, $1,840 of it in this example would be taxable.


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