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Author: AcmeFool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76882  
Subject: Re: Another IRA Question Date: 1/30/2011 9:55 PM
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Yes. However, if you already have any traditional, SEP or SIMPLE IRA(s), you'll have to combine all of them to determine how much of your Doth conversion will be basis (not taxed) and how much will be income. If you don't have any other IRAs, then the conversion would be tax free.

Bruce's comments here are key. This is the reason we did not use this same strategy for me. I have a sizable Rollover IRA that would have to be considered in the calculation.

There is no expiration for this "loophole" in the law. The Congress and the President can change this at any time, however.

I put loophole in parentheses, because it is not a loophole at all. The Congress knew exactly what it was doing when it added this to the tax code.

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