roth conversion mechanics

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roth conversion mechanics

Post by ruud » Wed Jan 06, 2010 12:31 am


i am about to convert the Vanguard traditional IRA we made non-deductible contributions to the past 3 years to a Roth. (we don't have any deductible IRAs, so the amount of taxable income as a result is fairly small)

i have a question about the mechanics of actually doing the conversion: i am under the impression i can just exchange the funds in the traditional IRA for funds in the Roth IRA (which already exists from contributions a few years ago).

could someone confirm that this is correct?


"A good plan, violently executed now, is better than a perfect plan next week."

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Post by kaneohe » Wed Jan 06, 2010 4:03 am

I don't know what you mean by "exchange" and I haven't done a conversion at Vanguard but at Schwab, they can just move the same securities or CDs from one account to selling involved.....

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Post by maywood » Wed Jan 06, 2010 7:21 am

Yes, you just exchange the funds from the Traditional to the Roth. I have done this several times at Vanguard. It's very simple!


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