I started an IRA many years ago. I have documented that my actual contributions amounted to $12,000.00. I did not convert to a Roth because I was told that the whole stock portfolio had to be sold before being converted and, then, the taxes on the appreciation spread over 3 years. Not wise for me to convert--should wait until 70 1/2 when I would be in lower tax bracket. Now, someone is telling me that I can roll uninvested 6K currently held in cash into Roth because this IRA money was after-tax money. My husband and I made too much to be able to write off these $2,000 deductions for IRA against our taxes. Is that possible? The value (original 12K of contributions) is now $55,000.00. I feel like I have made a mistake by not converting when taxes due could have been spread over the 3-year period. I am age 62 and really confused about all the pros/cons. I think I am correct that I have until 70 1/2 before I must take a distribution based upon life expectancy. Therefore, the funds will continue to grow, especially if I make good stock choices. Have I made a bad decision and what options might be available to me now? Thanks for any help.
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