The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/rollover-ira-10150655.aspx

Subject:  Rollover IRA Date:  4/10/1998  12:02 AM
Author:  jstanton Number:  3381 of 126929

After calculating my taxes this year, I find that I owe the IRS a few hundred dollars (considerable when you're a student making less than $10K per year). I found that I can save $300 in taxes by setting up a deductible IRA. I also planned to set up a Roth IRA for 1998, so rolling the deductible IRA into a Roth IRA seemed like an ideal solution. I contatced Ameritrade about this, and their reply indicated to me that after I roll the account over to a Roth IRA a) I can no longer make contributions to it (ie. I would hae to set up a new account to which I can make further contributions), b) the two accounts can never be combined, and c) I would have to pay taxes on the full distribution, even though I was funding an IRA with the distribution. Can anyone confirm these from experience? Any information or advice would be appreciated, as I must set the account up by Monday. Please reply be e-mail (jstanton@stevens-tech.edu)
Thanks,
Jeffrey Stanton
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us