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I had the same idea after my broker explained the loss (penality) I would incur for moving "tax deductible IRA dollars". I did a lot of reading and came up with the same idea. Split it up. I felt there had to be a way to end up with "tax-free interest" on more than just future Roth funds, somehow, without penalty. Sure enough, I proposed moving only those dollars that were nondeductible. Since moving the earnings would result in a penalty on them, (which might break even in the end) I decided that I prefer to do more than break even and leave theearning where they are. With several years of "nondeductible ira funds" moved over, I will end up with a lot more take-home money over the long haul. The interest on the original IRA as well as the earnings this account has already earned, will keep growing and I'll pay taxes on it upon withdrawal. But, those taxes will be at an even lower tax rate when you consider that the Roth funds will be nontaxable, earnings and all. What a deal!!! Kath
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