The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Regular IRA xfer to Roth IRA Date:  8/27/1997  10:08 AM
Author:  TMFTaxes Number:  282 of 123001

<<If you do the latter, remember that the distribution from your IRA might bump you into a new tax bracket, since one-quarter of the amount will be included in your 1998 income.'>>

Perhaps yes...

<<What do you make of that? Did Fortune make a slightly different interpretation of the rollover provision that they might need to retract in the next issue? Or are my concerns about rollovers and the AGI limitations less worrisome given this different math?>>

Nope. Not necessarily.

Remember that for rollovers that take place in 1998 ONLY, you'll get a break by being able to pay the tax over a four year period. The law is unclear if that means: compute the tax in TOTAL for 1998, and pay 1/4 i