"If you convert your traditional IRA to a Roth IRA, then all previously untaxed money in the traditional IRA will be taxed (but not penalized) as a result of that conversion. You may spread the income reportable on that conversion equally over the next four years if you convert by 12/31/98. That could reduce your tax burden this year if you elect to do so, but the remaining undeclared income may increase your taxes over the succeeding three years because it still must be declared and you will pay taxes based on the rates in effect in those years."Pixy..should I just leave that money alone? Leave it in, separate from the new Roth IRA that I'm starting? It's only about 5,000.