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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: OldAIMGuy who wrote (17127)10/20/2001 8:24:00 PM
From: rgammon  Read Replies (2) of 18931
 
Tom, et al,

FYI, it is feasable to convert an IRA to a Roth IRA, incrementally. Any distribution CAN be treated as a Roth conversion. So, lets say that you can afford to pay the taxes on $5k of incremental income this year. You instruct your custodian to execute a withdrawal and deposit the funds in a Roth IRA account (zero withholding on the distribution). You pay the taxes when you file your return (or make an estimated payment to cover the tax owed). This allows a multi-year conversion process, vs the 'one-shot' that the IRS docs, and finance writers tell you. This is a MUCH more patatable approach for me.

Robert
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