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Had another thought about the Roth IRA scams!

If, you roll-over a current IRA to a Roth type, you must pay taxes on the rolled-over monies, because this now becomes a distribution.

If you roll-over in 1998 you can distribute your tax burden over a four year period.

If you take monies from the Roth roll-over, to pay the taxes, the monies are taxed as ordinary income for the year of the roll-over.

If you take money from another investment (I assume it is invested. Who has money sitting around, not doing anything?) to pay the roll-over tax, you loose the dividends, interest etc. from that investment.

Now, I've read a number of articles on this topic arguing that a roll-over is good for everyone. Vanguard included. However, I don't think I've read any discussions about the social security angle nor the loss of income from the investments used to pay the roll-over tax.

Am I all wet?
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