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My wife and I each have over $20,000 in after tax contributions to our IRA's (I have SEP, she has regular). It is my understanding that when we ultimately withdraw money from our IRA's, we must consider the after and before tax monies proportionately with each withdrawal (I think I'm correct with this undestanding). This being the case, when converting from our IRA's to a Roth IRA, must we also proportionately transfer before and after tax money, or can we keep the after tax money in our IRA's and transfer only pre-tax money? If I have options, is there any "better" way to handle the transferring??

I am currently 58 years old, and hope to retire in four years.

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