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Phil wrote: "Just one caution. Remember that all your IRA accounts are lumped together when figuring the taxable portion of a distribution, which is what a conversion to Roth is. Some people think that if they've kept all their nondeductible contributions in one account they can convert just that account and use up all their basis. It doesn't work that way, as shown in Part I of Form 8606."

I don't understand this comment. I thought all IRA accounts stood alone if they were set up that way. I have IRA accounts for different years, in different financial institutions, in different types of investments. Is Phil saying that I have to take ALL my IRA accounts into account when converting just one year's IRA?

Example: Assume a person only has
(1) Before tax IRA (rolled over from 401-K) in amount of $100,000 invested in CD's at a bank,
(2) After-tax 1997 IRA in mutual fund at Vanguard (with original investment of $2,000 and current value of $1,500).

Couldn't I just convert the (2)IRA and leave the (1) alone?

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