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This may be a very FOOLish question... but I don't know the answer, so here goes. I have calculated that I will be better
off converting to a Roth from my regular IRA. But how do I do it? Is it done through the brokerage house and do they
send the taxes due or is it done through the IRS? Since I will have to pay this hefty tax bill with funds from the account,
do I need to liquidate funds and stocks in my account to pay the tax due? And (ouch!)is there anyway to avoid the 10%
penalty? Must it all be done in one year or can it be split over many years? And... (final question) will doing this raise my
current tax bracket all income for the year? Thank you. :)

You can convert part of the IRA and spread the process over several years.

The taxes are paid when you file your 1040 income tax return. Pay attention to estimated tax payments so you do not get an underpayment penality.

You will have the 10% penality on any money you take out for the payment of the taxes.

Might want to see a CPA to review you numbers and help with the estimated taxes. Paying the taxes out of the IRA reduces the benefit of the Roth. Might want to rethink the conversion.
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