Hi there Pixy,I'm a newbie to the Roth IRA game. I've been reading and re-reading Pub. 590 for some time now, and I think that I have a handle on the rollover procedure. I just want to run this by someone with more experience to see if my thinking is on track. Hope this helps anyone else with the same questions. Here goes.I have just left my employer. I currently have 33K in a 401k plan. All of the monies in the account are currently tax deffered. I am rolling this money into a conduit IRA. I have enough money in savings to pay the income tax that I will incur if I do a rollover to a Roth. However, I will be returning to graduate school for at least two years. I am planning to do a series of partial rollovers to take advantage of the lower tax bracket that I should be in, i.e., 15%, if possible. I would like to do the first partial rollover starting this year.My understanding from Pub. 590 is as follows:1. I can withdraw a portion of the assets in a traditional IRA and reinvest them (within 60 days) in a Roth IRA. I will roll the entire withdrawal into the Roth IRA. I see this as the most beneficial method of establishing a Roth IRA, if I am correct in my assumptions. 2. Or, I can establish a seperate traditional IRA (IRA 2) with a portion of the funds from the conduit IRA (IRA 1) via a rollover and have the traditional IRA (IRA 2) converted to a Roth. 3. The first of these actions will not be affected by the one year waiting period for additional rollovers. The second of these actions will be affected by the one year waiting period.4. I will include this withdrawal in my gross income for the current tax year.5. Any additional transfers from the conduit IRA to the Roth IRA will be carried out as in step 1.I talked to my broker about the above, and the customer rep. really wasn't sure. Anyhow, this is my current understanding of the process. If you have any input, it would be greatly appreciated.Best Regards,Jas
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