No. of Recommendations: 0
He can roll the whole kit and kaboodle into a Roth, leave it all there, or move some of it into a
Roth. If he's going to convert it into a Roth, it's best to move the non-deductible money into the
Roth first, because that will serve to reduce the tax burden. It will reduce the amount of money
that's considered income. In my case, I moved around $20K into a Roth, and would have had to
pay taxes on all of that. However, because I had made around $3600 in non-deductible
contributions, that served to reduce my tax basis to around $16K.


I think what you propose cannot be done. It is the percentage of your basis that determines what portion of the conversion will be taxable. For instance if you have a 20k IRA with 10K basis--Your basis % is 50%(10k/20k=50%) of the value of the IRA so when you do a partial conversion no matter how big or small-- 50% of the amount converted to a Roth will be considered as a taxable event. I know I didn't do a good job of "splaining" but the heavy weights of the board will clean up my mess (I hope)
Bryan
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