I have a traditional IRA that I want to convert to Roth and pay the taxes and be done with it. Presently I am receiving monthly dividine checks and the bank is taking out 10 per cent for income taxes. I have done this for yrs. 1998, 1999, and 2000 and presently 2001. In 2001 i will be 65 and I want to convert to roth and then receive monthly checks with out the taxes. Question: Can I convert to Roth since I am retired and already drawing social security?

Yes, if you meet the conversion income threshold.

But, if the IRA is of significant size, you may want to do partial conversions over a couple of years to avoid tax bracket creep. You also need to handle the timing of the current year dispursements, if any.

If you don't need IRA funds for living expenses, you will be able to skip any withdrawals from the Roth and extend the tax shelter. In most circumstances you want to burn off all other funds before taping into a Roth. There are also some favorable treatments of Roths that are inherited.

I would recommend you speak with a tax advisor before you act. Mistakes on details and timing can cause a lot more pain that paying for tax advice.