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Am I reading this correctly; regardless of where the funds in a Traditional IRA are held (separate account or otherwise) or you keep the funds separate (Deposit $5500 into Traditional and as soon as funds settle convert to Roth IRA), I will always be liable for taxes on the conversion based on the ratio of Pre-Tax to Post-Tax funds in those accounts?

I ask because I only use my Traditional IRA account to do backdoor Roths, but have recently rolled a small refund from a pension system into the Traditional. If that money is always there, then I'll always be subject to the pro-rata rule, no? Might be worth just biting the bullet now and rolling the funds into the Roth and paying the taxes to avoid future headaches of this pro-rata rule. Are my thoughts on this accurate?

Thank you,

Patrick
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