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Author: rshrake Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: The 8606 & Roth Conversion Date: 2/25/1999 2:53 PM
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Hi, and thanks in advance for your help.

I'm using TaxCut, I've reviewed the Fool Invest. Tax Guide, read the TaxFAQ/Roth and reviewed posts on this matter back to late Jan. I believe I've got the right numbers on the 8606 but they don't seem to jive with the IRS' instructions. Please review:


8606, line 5: $12,000 tax basis for non-deduct Ira's

Line 6: $154,980 traditional IRA on 12/31

Line 7: 0 distributions

Shouldn"t line 8 be $222,049, including both my partial $67,069 Roth conversion and the $154,980 traditional IRA.? I want to apply my $12K deductible basis across all of the IRA right?

Line 9 then would be .054 and Line 11 = $8369
Line 14a 67,069 and Line 15 = $3622 (.054 X 67069)
Line 16 = $63,447 / 4 = line 17 $15862 taxed additionally over 4 yrs?? So have I got these right?

Finally, so my basis for the traditional IRA of $154,980 is now 146,611 or line 6 minus line 11??

Any assistance you can provide is appreciated.



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