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|Subject: Re: Conversion to a Roth IRA||Date: 2/23/1998 12:59 PM|
|Author: DownwardSpiral||Number: 1928 of 76418|
I don't disagree with Pixy's thoughts for normal people, but I ain't just no NORMAL Fool---
I am planning to open an IRA for my minor child who got her first real job in 1997. There are a few reasons why I will try to set up a commingled Roth IRA for her:
1) I want a Roth at her tender age, so everything compounds for 50 years
2) Her tax liability is real low, so a conventional IRA doesn't save many tax dollars
3) I can only open a traditional IRA with 1997 dollars
4) I will have to add 1998 dollars when opening the account to get to $2,000--which is the minimum which most of the no-annual-fee brokers will take to open an account
5) Then, after opening the traditional IRA with 1997 and 1998 after-tax dollars, I will ask to have it converted to a Roth.
6) I will then start contributing to this account for her.
Am I all wet?
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