No. of Recommendations: 2
if the value increased significantly before the rollover to Roth, I might have a paper gain, and I would have to pay the taxes on that gain at a high rate of 38% combined federal/state immediately at rollover time. This would be a short-term gain (less than 1 year) since I plan to do a rollover to Roth of my after-tax contributions every year.

ALL taxable distributions from retirement accounts are ordinary income, regardless of how the money got there.

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