haha
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
As a previous poster mentioned, if you convert $100,000, and pay the tax out of your taxable account, which IMO should always be done, at the 25% rate you have essentially contributed $75k or your IRA funds, and $25K of taxable funds.
I do not consider myself a frequent trader, but my broker does. What I do is to hold any gain in a taxable account at least until it is long term, but in a deferred or better yet a tax free account like a Roth I have no constraint about selling should some stock get way beyond what I consider a fully justified price. I started my Roth with a conversion in Jan 2010, and made one more ending in Mar 2012. But that account has doubled in value, whereas my taxable account has not gained anywhere near as much proportionately.
So, I think if the tax problem does not seem overwhelming there is good reason to do the Roth conversion.
Ha
I do not consider myself a frequent trader, but my broker does. What I do is to hold any gain in a taxable account at least until it is long term, but in a deferred or better yet a tax free account like a Roth I have no constraint about selling should some stock get way beyond what I consider a fully justified price. I started my Roth with a conversion in Jan 2010, and made one more ending in Mar 2012. But that account has doubled in value, whereas my taxable account has not gained anywhere near as much proportionately.
So, I think if the tax problem does not seem overwhelming there is good reason to do the Roth conversion.
Ha