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<<Hmm... I missed that somewhere along the way. In fact, I still had a question as to whether initial funds in a conversion Roth would be considered as contributions.

To put it in the form of a simple question: If I convert a traditional IRA to a Roth this year, and the intitial total is $5,000.... in 5 years will I be able to withdraw that $5,000 without penalty? The reason I'm asking is I still haven't seen a definitive "conversion money will be treated as a contribution" statement from the Feds.>>

Yes, as the technical correction in Congress will clarify when it's finally passed and signed into law. All indications are the provisios as I've outlined in previous messages will be enacted intact.

<<Second question: Just to clarify... you're saying if I open a Roth IRA this year with a $2,000 contribution, next year I can withdraw $2,000 without penalty?>>

Yes, as the present law already specifies.


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