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Investing/Strategies / Retirement Investing
|Subject: Re: Roth IRA||Date: 2/5/1998 7:07 PM|
|Author: TMFPixy||Number: 1640 of 74431|
<<Hmm... I missed that somewhere along the way. In fact, I still had a question as to whether initial funds in a conversion Roth would be considered as contributions.
To put it in the form of a simple question: If I convert a traditional IRA to a Roth this year, and the intitial total is $5,000.... in 5 years will I be able to withdraw that $5,000 without penalty? The reason I'm asking is I still haven't seen a definitive "conversion money will be treated as a contribution" statement from the Feds.>>
Yes, as the technical correction in Congress will clarify when it's finally passed and signed into law. All indications are the provisios as I've outlined in previous messages will be enacted intact.
<<Second question: Just to clarify... you're saying if I open a Roth IRA this year with a $2,000 contribution, next year I can withdraw $2,000 without penalty?>>
Yes, as the present law already specifies.
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