No. of Recommendations: 1
MBGaultney: "This may be a very FOOLish question... but I don't know the answer, so here goes. I have calculated that I will be better off converting to a Roth from my regular IRA. But how do I do it? Is it done through the brokerage house and do they send the taxes due or is it done through the IRS? Since I will have to pay this hefty tax bill with funds from the account, do I need to liquidate funds and stocks in my account to pay the tax due? And (ouch!)is there anyway to avoid the 10% penalty? Must it all be done in one year or can it be split over many years? And... (final question) will doing this raise my current tax bracket all income for the year?"

No offense intended to you MBGaultney, but I find it hard to beleive that you could accurately calculate that you will be better off converting from traditional IRA to Roth IRA and still not know the answers to the questions you are asking. The answers affect the calculation and analysis, IMO.

I suggest that you read TMFPixy's article or articles regarding conversions to Roth IRAs. It should either be in the FAQ or linked from the FAQ.

Just my $0.02. Regards, JAFO
(posted before reading all responses; sorry if I am being repetitive)


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