roth conversion mechanics

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ruud
Posts: 134
Joined: Sat Mar 03, 2007 1:28 pm
Location: san francisco bay area

roth conversion mechanics

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

hi,

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?

thanks,

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

kaneohe
Posts: 4819
Joined: Mon Sep 22, 2008 12:38 pm

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 another........no selling involved.....

maywood
Posts: 250
Joined: Tue Jun 19, 2007 9:52 pm

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!

Maywood

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