I'm in a slightly different boat than the OP. I would like to pull out all my after tax ira contributions and roll this exact amount to a Roth IRA and I would like to keep all the gains from these after tax contributions in the existing ira. For example: if I made $60k after tax contributions to my existing ira for the last 20 years (documented by returns with form 5498 filled out each year), I would like my broker to transfer this $60k into a new Roth IRA and pay no taxes on this amount since this was after tax dollars. Then after 1 year, I have been told that I can cash out this Roth IRA with no penalties or taxes, but any gains from this $60k I would have to leave in the Roth for 5 years. Does this makes sense? Is this legal and would turbo tax allow me to classify this rollover as non-taxed? Thanks
