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URL:  http://boards.fool.com/greetings-pauma-and-welcome-ltlthelp-do-i-10128442.aspx

Subject:  Re: Roth conversion in 98 or 99 Date:  3/14/1998  1:27 PM
Author:  TMFPixy Number:  2197 of 75340

Greetings, Pauma, and welcome.

<<Help. Do I convert in 98, which will be a low agi,but next three years will be big agi's or do I wait until 99 and plan on a low agi (15%) ? Is the tax on the converted IRA amount found by multiplying 15 times the amount for 99? and paying the tax all in 99. It may be better not to use the 4 year spread. What are your thoughts.>>

Tiggertoo and tc001 both gave you some excellent points to consider. There is no "one size fits all" response to your question. You have to look at your entire tax situation before you can make a reasonable decision. The size of the potential conversion, the taxes on that conversion, and your other taxable assets all have a bearing on the problem. I suggest you run the numbers based on your personal circumstances to see if 1998, 1999, or never is the best time for you to convert.

And BTW, as tc001 pointed out the multiplier is 0.28 or 0.15 if you're using marginal tax rates in your analysis.

Regards…..Pixy


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