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Subject:  LT Gains in re: Roth Conversion Date:  7/13/1999  10:52 AM
Author:  kplynch Number:  17233 of 133017

I read the Roth FAQ, and I've been lurking for a while, but a grasp on the following issue still eludes me:

In 98 I converted a ~$20K IRA to a Roth IRA. All my contributions to the IRA were tax-deferred. I elected to take the ~$20K hit over four years, and basically added ~$5K to my income for '98.

My salary puts me in the 28% bracket. After reading here about the 20% rate for long-term capital gains, I got to wondering whether I over-taxed myself with the Roth conversion.

That is, almost all of the ~$20K IRA I converted was comprised of contributions I had made years ago.

- Shouldn't therefore most of the gain be taxed at the LT cap gains rate?

- If so, can I rectify this with an amended return?

- In the next 3 years, in addition to the 1040 long form, what extra form(s) should I be using to calculate LT gains?

PS: thanks for this and all your previous info. You posters are doing a real service here.
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