Kevin, assumming that the money has been in a Roth IRA for 5 years and you are over 59 1/2, any money distribution from a ROTH IRA is tax-free. I assume that you are aware that whatever money you convert from a traditional IRA into a Roth IRA is taxable in the year of conversion. Thus if you convert 50K in 2000, you will have to pay tax on an additional 50K of income in 2000.
The whole idea of the ROTH is that the initial contribution. or conversion in your case, and any subsequent earnings, are not taxed at distribution (assuming the 5 year and 59 1/2 criteria are met. If you convert 50k from a regular IRA into a ROTH and it grows to 500K, any money taken out will be tax free (again, assuming the 5 years and 59 1/2 rule). On the other hand, if the 50K craps out to 20K, then cie la vie. On question i have though, given how well the Janus funds have done, why didn't you just convert the Janus Traditional IRA into a Janus Roth IRA. Their performance has been awesome. Larry |
