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Investing/Strategies / Retirement Investing
|Subject: Re: I'm confused...||Date: 4/6/1998 11:14 PM|
|Author: gdc45||Number: 2659 of 76610|
< 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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