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URL:  http://boards.fool.com/downwardspiral-ltlti-dont-disagree-with-10112343.aspx

Subject:  Re: Conversion to a Roth IRA Date:  2/23/1998  2:35 PM
Author:  TMFPixy Number:  1934 of 75539

DownwardSpiral,

<<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.>>

As long as the money isn't touched for five tax years, it all makes perfect sense to me. Also, it hinges on your provider permitting the comingling of those monies. The only IRS-approved agreements (put out by the IRS) won't permit it as of right now. That may be a stumbling block to your plan because most providers will go along with the IRS form.

Regards…..Pixy


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