multiple IRAs to Roth (deductible and non-deductible)

[Guest LRicci]

I am working on how much of my portfolio I can afford to convert to a Roth IRA. A few thousand is in an IRA that was created with non-deductible funds, the great majority is in several IRAs formed from deductible contributions. I've noted that some kind of balancing must be done for conversion to Roth IRAs but don't know how to do this.

[Guest coyote]

I have the same situation, except my deductible IRA's have all been converted to a single IRA, and my non-deductible contributions IRA is small in value relative to my deductible IRA, like less than 5%. My understanding is that traditional IRA amounts to be converted to a Roth are treated as a regular IRA distribution, except no penalities apply. My question is do I understand regular IRA distribution rules correctly? That is, all IRA's or IRA funds, both contributions and earnings gains whether from deductible or non-deductibe contributions over the years must be summed together whether they are separate accounts or not. To the IRS there is only a single IRA. Then the ratio of the non-deductible contributions only, to the total value of all IRA's, is applied to the amount you wish to convert, and that amount will be excluded from taxable distribution. Or is it something different, like the ratio is calculated as non-deductible contributions only to total contibutions only, earnings excluded. Now to surf for the answer.

[Guest coyote]

And I have to apply for conversion this weekend, I'm a Schwab customer with Dec 15 as deadline for conversion forms.

[Guest coyote]

Lricci: Your answer is at http://www.fairmark.com/rothira/conseq.htm

[Guest LRicci]

Thanks Coyote!