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[[I have contributed a total of $6000 to the traditional IRA, of which only $530 was deducted from
my taxes. That leaves $5470 of IRA contributions that were non-deductible contributions. When I
converted my trad. IRA to a Roth IRA on 3/17/98, the value of the IRA was $4764.]]

Owch. I hope that you investing future shows more promise.

[[ Question # 1: Does the IRS use the value of the IRA on the date it was converted for tax purposes
or does it use some other day? ]]

Conversion date.

[[ Question # 2: Since I have actually lost money in my IRA, does this mean I won't have to pay any
taxes on this conversion? (Again, I've already paid taxes on $5470 worth of contributions, and the
IRA is worth only $4764).]]

Yup. Since your basis in the IRA is greater than the value of the IRA, none of your conversion amount will be taxable.

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