Date: Fri, 8 Dec 2006 09:51:38 -0600
From: Mark Bole 
Newsgroups: misc.invest.financial-plan
Subject: Re: dollar cost average effect
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Dave Dodson wrote:

> wyu@talisys.com wrote:
> 
>>If you converted it all at once at the peak, would you also have sold
>>at the peak for maximum profit?

> You also would have maximized the income tax due on the conversion. You
> would rather do the conversion at the lowest price of the year to
> minimize the taxes, wouldn't you?

Since I don't know when the lowest price will be, I can take several 
small shots at it instead of one big shot - a form of dollar cost 
averaging.

It's not a question of minimizing or maximizing taxes -- I'm going to 
pay the same fixed amount of income tax either way, but the question is 
how high of a percent of my pre-tax IRA money can I convert to post-tax 
Roth IRA money?

Incidentally, I don't want to mess with the paperwork involved in 
multiple re-characterizations of IRA conversions, in case anyone was 
thinking of that.

-Mark Bole