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URL:  http://boards.fool.com/hey-hajile-lt-1-i-can-open-a-traditional-10147714.aspx

Subject:  Re: I'm confused... Date:  4/6/1998  11:14 PM
Author:  gdc45 Number:  2659 of 75383

Hey, Hajile;

< 1) I can open a traditional (non-Roth) IRA before April 15, with a contribution up to $2K (for
1997). I can make this a non-deductable contribution if I don't want to pay tax on the rollover
(scheduled for 1998, see #2 below)> correctamundo

2) I can add up to $2K after April 15 which would count as my 1998 contribution.> You don't have too wait until after APR 15, you can contribute anytime after Jan1!

<I also think I can make this a non-deductablecontribution and then rollover the whole enchilada into a Roth, which would mean I am done for that year ('98): I've made my $2K contribution, rolled into into a Roth IRA and I'm done. (I guess I would also have to pay taxes on the increase of the value of the IRA, but not the contributions, as long as they were non-deductable.)

Now, questions abound... can I make a contribution into that same Roth IRA after April 15, 1999?
Do I have to open another IRA in order to make contributions for the next 5 years? I read abo Tax Q&A section of the Fool's
School...anyone??? Waterhouse, (and all others I've called), is telling me I have to open two
accounts, one for the Roth rollover and one for contributions. > KAT's Fairmark website says that the technical correction MIGHT alleviate the necessity of several accounts...but that's not yet law. Thus, IRA custodians must advise you using current statutes. That's my $.02...GDC
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