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    pgwills's Avatar
    pgwills Posts: 8, Reputation: 1
    New Member
    		  
    #1

    Jan 11, 2007, 06:08 AM
    Changing an ira to roth
    If I have rolled over a 401k to an Ira then how do I change it to a Roth and how is the taxes handled at that time?
    sideoutshu's Avatar
    sideoutshu Posts: 225, Reputation: 23
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    #2

    Jan 11, 2007, 07:40 AM
    Let me say that I am not by any means a financial guy, but I am thinking of doing the same thing. I am actually a little curious, and wanted to add to the question.

    I read something recently that they will be changing the laws in the next few years to allow money in a regular IRA to be transferred to a Roth without paying taxes on the principle (only on intereest accrued). This would seemingly allow you to obtain "free money" by transferring money you will never pay taxes on into a Roth. Anyone have more information about this?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jan 11, 2007, 06:31 PM
    I have not heard any such thing about tax-free transfers, and I sincerely doubt it will happen!
    pgwills's Avatar
    pgwills Posts: 8, Reputation: 1
    New Member
    		  
    #4

    Jan 12, 2007, 07:03 AM
    No I do agree that there will always be taxed but before or on distributions is when. I am wondering if the other persons response as to the new law which will allow you to go directly into a roth next year so again I can not find out how and how much tax will be. Thanks for your responses.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #5

    Jan 12, 2007, 07:06 AM
    This site may help:

    Fidelity Investments

    Here's another one that looks helpful:

    Roth IRAs: To Convert or Not (Retirement: Personal Finance) | SmartMoney.com

    I googled Convert IRA to Roth and got a bunch of hits.
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