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Greetings, Angieeddy, and welcome.

<<Any idea how to calculate the price I'd have to pay for the privilege of converting my non-deductible IRA to a Roth? I know I get to spread it over 4 years. I just want to know how bad it will hurt at the end of the 4 years.

Some info (if it makes any difference): I opened it 2 years ago and contributed the full amount for Roth '96 and '97. Part of it's in a mutual fund that
promptly lost 20% right after I bought it. The rest is in money market. The net is there are no profits in this account (unless you count the pittance from
the money market) and I've already paid taxes on the contributions.

Is there some formula for figuring how much of what's in the account is taxable? Or is the answer basically "How much is in the account? Send it to us.">>

The quick way is to look at today's market value of the account. From that, subtract your after-tax contribution. The remainder is what will be taxable by claiming one-fourth of that amount over the next four years as income. Example: Today the account is worth $4.5K You contributed $4K in after-tax money. One-fourth of $500 ($4.5K - $4K), or $125 ($500 / 4) will be declared and taxed at your marginal rates in each of the years 1998 through 2001. If you contributed $4K and the account is worth $3K, nothing would be taxable on the conversion. Don't ask me if you can claim a loss on the returns for the next four years, though, because I don't know. :-)

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