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[[I have a regular IRA in which I have made $12000 worth
of non-deductible contributions.

If I open a Roth IRA and do a partial rollover of my
regular IRA into it in the amount of my non-deductible
contributions ($12000), I would expect that I don't
have to pay any taxes on the conversion, since taxes
have already been paid on that amount.
Is that true? Can anybody confirm?]]

Nope. That is NOT how it works at all. IRS considers your current IRA as one big homogenious IRA. And any distributions from the IRA (such as to make a Roth conversion) must be done on a pro-rata share.

For example, say your IRA was worth $50k, and you have $10k of non-deductible contributions. This means that 20% of your IRA would be "basis". If you made a $10k conversion to a Roth IRA, only 20% (or $2k) of that amount would be considered your "basis", and the remaining $8k would be taxable.

See how it works?? If you would like to read more about these computations, you can do so at IRS Publication 590 at the IRS web site.

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