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Let's just address this one point:

Well I guess I reached that conclusion from this exchange you had with aj485 where she wrote, Why wouldn't converting just part of the IRA work?

And you replied, It would work. But what is there to gain by converting when the non-deductible IRA is at a loss? All I see is added complexity for no benefit.

That just seemed to me that you were advocating a convert-it-all approach.


That is not what I was saying. I was advocating making no conversion at all until the account regained it's losses. Once the traditional IRA recoups the losses, convert it all at that point and be done with all of the basis issues in one fell swoop.

If you do a partial conversion, you have to make sure that you find out and keep apprised of any low balance issues at your broker (things like added fees or forced account closure). If no additional funds are added in the future, it will take a lot longer (because of the smaller amount invested) to recoup the loss, forcing you to keep track of your remaining basis for a longer time. These are just a couple of the added complexities I was referring to.

--Peter
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