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I am thinking of doing a Roth Rollover of some TIRA funds so that my marginal tax rate is just at the borderline between the 25% and 28% tax brackets. I've done this before, but this year is different. This year I realized a substantial long term capital gain when I cashed in my position in stock acquired over the years in my employer's employee stock purchase plan.

Do I understand correctly that the tax on this transaction is approximately (or exactly) 15% of the gain?

Is it true that this is separately accounted for income that has no impact on my taxable income which is subject to income tax according to the tax tables?

Short of filling in a hypothetical tax form, I'm not clear how I can answer this question by myself. If the explanation is simple and direct (and tax questions usually are not) please enlighten me.


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