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Author: xtraFool Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Re: rollover to Roth IRA Date: 10/15/1997 5:54 PM
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thanks Pixy for your help but.........

i'm still unclear about the tax consequences of rolling over to a roth. let's say i have an ira account with $2000 of deductible contributions and $2000 of 'non-deductible' contributions. i would like to rollover only $2000 to a roth ira account. further, i would like to move only the $2000 that i have already paid taxes on, so that i incur no additional tax liability. is this possible? or will i still have to pay taxes on 50% of whatever portion i rollover, in this case $1000 worth, since 50% of my total ira was not taxed?

that's why i thought i had made a mistake by adding money from my 401k to my ira. this just greatly increases the overall percentage of pre-tax money. i am not planning on rolling over my entire standard ira into a roth. so using the above example, if i add $16,000 from my 401k to my ira, this decreases the taxed portion down to only 10%. so now do i have to pay taxes on $1800 out of the $2000 roth rollover? being able to designate rolling over only the post-tax portion of my ira and not having to pay more taxes right now would be the answer i'm looking for!

still desperately trying to achieve foolishness,
xtraFool

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