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Subject:  Tax liability on Converting trad ira to Roth Date:  12/18/2012  12:02 PM
Author:  rayneufeld Number:  117153 of 129771

For the last two years I have made contributions to a traditional IRA but was not eligible for the tax deduction. Next year our household will see an income increase (my wife id returning to work) and I am considering converting my traditional account to a Roth before year end. My TD Ameritrade rep told me that he thinks I will have to pay tax on the amount rolled despite having paid the tax once already. I seem to recall being told otherwise last year when I inquired about this -- that the amount was recorded as a post tax contribution and therefore would convert without an additional tax liability.

Anyone know for sure?

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