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I have a couple Roth IRA questions that I hope someone can help with.

First, I have about $20K in a Traditional IRA account (all contributions were fully deductible). This year, I decided to take advantage of the Roth IRA. I do not want to have to pay taxes on that IRA, but to give
the Roth IRA account a turbo start, I did the following. I opened a new Traditional IRA account (1997 tax year contribution of $2K, non-deductible) this year with a different custodian, then immediately
converted that account to a Roth IRA. That way, I still can add another $2K for this year. With 20-20 hindsight, I have some questions.

1. Am I going to have to pay any taxes on the $2K Roth IRA Conversion by prorating the $2K non-deductible account with the $20K deductible account that already existed? In other words, is 90% of that conversion
actually taxable, even though it was from a non-deductible account?

2. The Roth IRA account is actually identified as a Conversion account in title. Does this carry any significance or implications that should make me think twice about adding "new money" to the account? In other words, do I need to open another regular Roth IRA to fund with "new money"?

Any insight is appreciated. Please cc: any responses to

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