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I am doing the 2 step process of 1) directly rolling over a prior employer 401(k) to an IRA with a brokerage, which has been completed (custodian to custodian)and then 2) converting the Direct Rollover IRA to a Roth IRA (in-process).

With regard to the two elections/defaults I face:

1) I intend to spread the taxable income ratably over the allowable 4 year period. There is no place to indicate this choice on the broker's Roth conversion form. Therefore, I understand this to be strictly a matter that is addressed by me on my personal tax form at filing time, and that the 4 year deferral is the default choice. Meaning, there is no paperwork, from the IRS or the broker/custodian, where I would have made this choice, prior to filing my 1998 return. Correct?

2) I intend to pay the taxes on the IRA balance converted to the Roth, out of personal funds (non-IRA). Please confirm that the only step required to elect out of withholdings being deducted from the IRA balance by the custodian/broker, relating to distributions from the IRA triggered by conversion to the Roth, is to make that election on the Roth Conversion form (resulting in a transfer of 100% of the IRA balance to the Roth).

Thank You
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