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Subject:  Rolling IRA into a ROTH IRA Date:  2/26/2011  5:32 PM
Author:  chopsueycp Number:  112471 of 132656

Hello Fools,

I was referred to this board for a tax question. Thanks in advance for your help!

If I want to roll my Traditional IRA (which came from a rolled-over 401k) into a ROTH IRA, how do I report this on my taxes? Will the amount be considered gross income for that tax year and be taxed at my marginal federal tax rate, potentially kicking me into a higher tax bracket?

Also, will the pre-tax contributions that I and my employer have made into the account (from the 401k days) be taxed at a different % than the interest earned over the years? Is that interest considered long-term capital gains? OR is the entire amount that I rollover considered simply ordinary income?

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