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Thank you, After sleeping on it and letting it percolate a bit, It makes better sense to me that since my 401(k) savings was "pre-tax", my "basis" would be zero. I need to pay tax on any amount I roll over. Thank you also for pointing out that as a conversion the "income" or roll-over amount has to be counted in the year it's rolled over. So it won't reduce my 1999 refund, but will impact my 2000 taxes instead.

What I guess I should do is open the account with a "contribution" prior to 4/17/00 to start the 5 year period from 1999 and not 2000. My understanding is that the 5 year period is satisfied for the entire account by the "earliest" money in the account. Is that right?
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