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Author: rpwatson Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121169  
Subject: Roth Conversion at Market Loss Date: 4/17/2001 4:54 PM
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I plan to convert to a Roth from an IRA containing deductible and non-deductible contributions of $12,000 each. Due to the market drop the total IRA value is now $17,000. How do I figure my taxable basis this year on the conversion? Would 50%($8,500) be the taxable basis or can I deduct the full $10,000 non-deductible contribution from the transfer value?
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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 50409 of 121169
Subject: Re: Roth Conversion at Market Loss Date: 4/17/2001 6:51 PM
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I plan to convert to a Roth from an IRA containing deductible and non-deductible contributions of $12,000 each. Due to the market drop the total IRA value is now $17,000. How do I figure my taxable basis this year on the conversion?

If you convert your entire traditional IRA (all accounts), your basis is $12,000. See the instructions for Part II of Form 8606.

Phil Marti

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