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Thanks Kaye for the help and the link to your web site. I read the rules of thumb and am not sure what to do yet. I think I will have to read the entire section before knowing what to do.

Basically I have an IRA with about $18K worth of equities. My income is rarely over $40K. If I roll over the IRA to a Roth IRA this year I can take up to four years to pay the tax on the rollover and that should help.

If you sincerely believe you can predict a drop in the market, why is your IRA entirely in equities?

Because I am 43 and plan on leaving it in equities for at least 20 years. That said I think that there could be a bit of a pullback from yesterdays high. Looks like a few words from Alan Greenspan on interest rates is all that is needed to spook the market. This of course is a short term phenomenon which I will ignore as far as buying and selling are concerned, but will take advantage of as far as Roth conversion is concerned.

The major advantage of the Roth as I see it is that you don't pay taxes on your capital growth as you would in a regular IRA, because you pay the taxes up front with the Roth. Correct me if I am wrong.

In twenty years the growth, along with additions to my Roth should add up to alot of tax free money. Am I missing something?

Thanks a Million, (I hope!)
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