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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75642  
Subject: Re: Roth Conversion Date: 2/20/2009 11:18 AM
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Say your traditional IRA was never tax deductable. What would you pay taxes on when converting?

You would have to pay taxes on any gains in the converted amount on a pro-rated basis. For instance, if your contributions were $10,000 and your current balance is $15,000, you would pay taxes on $5,000. If only only convert $12,000 out of the $15,000, you would pay taxes on $4,000. The remaining $3,000 in your traditional IRA would have a non-deductible basis of $2,000.

AJ
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