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Old 10-16-2015, 09:45 PM   #21
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Originally Posted by Davaldez21 View Post

Essentially your non deductible funds are watered down and become part of 'the pool' unless you convert the whole thing? (Unless you utilize a separate T401k account) several users mentioned
This is a very good way of thinking about it. Everything is mixed together in a uniform solution and the only way to benefit completely from the non-deductible basis is to convert the whole thing.............unless ,as you say, you utilize the T401K , in which case the deductible funds magically float on top of the non-deductible basis and you can skim them off to the 401K, leaving the
non-deductible basis behind to be converted separately.
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Old 10-18-2015, 11:36 AM   #22
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There is no significant difference between converting 99% of your balance and all (ie 100%) of the balance, other than perhaps simplified calculations on the tax forms.

It is not as if something changes when you convert it all.

-gauss
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Old 10-18-2015, 12:11 PM   #23
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There is no significant difference between converting 99% of your balance and all (ie 100%) of the balance, other than perhaps simplified calculations on the tax forms.

It is not as if something changes when you convert it all.

-gauss
no argument there.......the key word was "completely"......but it is an analog conversion.....convert 50%, get 50% of the benefit; convert 99%, get 99% of the benefit........never meant to imply that you get no benefit if you don't convert it all. Was just trying to say it could get pretty expensive to convert that way as opposed to the isolation of basis that you mentioned previously....that's where the magic is.
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Old 10-18-2015, 05:23 PM   #24
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Agreed!

Thanks
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