The following is from a post I read from another Site message board:
"The following is from "The Roth IRA. An explanation Prepared by the staff of the Senate Finance Committee, William B. Roth Jr., Chairman":
"If, during the four-year period that for income recognition for the 1998 conversion, a taxpayer takes a distribution from the Roth IRA, any amounts withdrawn which were not included in income will become included in income in the year that the amounts were withdrawn.
For example, if $100,000 was converted to a Roth IRA in 1998, each year for the next four years, the taxpayer must recognize $25,000 in income. If, in 1999, the taxpayer takes a distribution of $60,000 from his Roth IRA, the taxpayer will have to include an additional $10,000 in income in 1999 in addition to the $25,000 that the taxpayer was scheduled to include in income. That will mean in the year of withdrawl, at least $60,000 was imcluded in income in this or any preceding year"
My breakdown:
1998 $25,000
1999 $25,000
1999 ** 10,000 35,000
Total 60,000
I don't understand this???