tommc writes (in part):for conversions of traditional IRA into Roth Ira? If I held a stock in a traditional IRA over 12 months and convert all this money into a Roth is the gain taxed at income tax rate or capital gains rate?I reply:Taxable distributions from an IRA are always taxed as ordinary income, and never as capital gains. That's the reasoning behind intercst's advice that non-deductible IRAs are inferior to taxable buy-and-hold accounts. (By the way, I tend to differ, primarily because I hope that Congress will do away with the $100,000 modified AGI limit on conversions, allowing me to place more into a Roth.) --Bob
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