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>Thanks for your help. One more thing: I'm trying to >figure out the logic behind making someone pay
> taxes on the converted amount that is income to the >traditional IRA (as opposed to the
> contributions made to it). Since income grows tax >free in both a traditional IRA and a Roth IRA,
> why should one have to pay tax on this income during >a conversion? This sounds like a penalty to
> me. What am I missing?

Traditional IRA's are generally deductible, Roth's aren't. In the long run, deductible contributions and taxed income comes out the same as taxable contributions and nontaxed income, *IF* you put in the same true amount. (However, with Roth, you get to put in more true $.)
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