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<<< I have some money in a former employer's 401k program that I am in the process of rolling over to a Rollover
(Traditional) IRA. My question is, if I decide to convert this into a Roth, and it gets taxed, does the tax money
get taken out of the amount in the IRA, or do I just owe the taxes come tax time next year? Thanks! >>>

While you may do this, I believe that the money used to pay tax will be considered as a withdrawal from the traditional IRA, and subject to any penalties that may apply.

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