The taxes don't HAVE to come from outside the IRA, but it's best if it does. If you use the money from the IRA to pay the taxes on the conversion, you're reducing the amount of money you have invested.If you can't pay cash for the taxes, consider leaving the money in the traditional IRA until later in the year, or maybe until next year. There's no hurry to convert all or part of the money to a Roth. I guess the only thing would be that your money might grow in the next year, so you might owe more in taxes than you would if you converted it sooner. But it's still better to pay cash for the taxes, so waiting on the conversion from traditional to Roth might be your best bet.
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