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URL:  http://boards.fool.com/-does-anyone-have-a-guestimate-as-to-when-the-10086392.aspx

Subject:  Re: Roth IRA, WHEN? Date:  1/21/1998  11:09 AM
Author:  TMFTaxes Number:  1412 of 124651

[[ Does anyone have a guestimate as to when the Roth IRA will become law so we can start playing?]]

Welcome to the party!!!

Roth IRA rules became effective about 21 days ago on January 1, 1998.

Some brief information that may be of interest to you...

The NEW Roth IRA

Effective for tax years beginning after 1997, there's a new type of back-ended IRA - called the Roth IRA - to which taxpayers and spouses (even those who have attained age 70-1/2 and/or are a participant in another qualified employer pension or profit sharing plan) will be able make annual nondeductible contributions of up to $2,000 of compensation. Qualified distributions (defined below) from a Roth IRA will be tax-free.

Contribution limits: The amount that can be contributed to a Roth IRA for an individual will be reduced by the excess of:

1. the maximum amount allowable as an IRA deduction for the individual for the year (determined without regard to the ban on non-Roth IRA contributions for age-70-1/2 taxpayers and the AGI-based phaseouts for active plan participants), over

2. the total amount of the year's contributions to all non-Roth-IRAs maintained for the taxpayer's benefit.

In effect, what this really means is