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Subject:  pre-tax ira questions Date:  11/18/1998  9:07 PM
Author:  rtomase Number:  6376 of 127616

I opened up an IRA a couple of years ago to roll over company contributions (stock) from my 401k acct. so I could dump the stock and use the proceeds to buy other stock.

This year, I opened up a separate Roth IRA and funded it with $2000 cash.

I have some questions:

1. Do I need to keep the pre-tax IRA acct so I can receive the rollovers from the 401K, or can I roll over from the 401k directly to the Roth?

2. What are the tax consequences of rolling over assets from the pre-tax IRA to the Roth IRA?

3. Does an IRA which has always contained pre-tax money change 'type' to after-tax if cash is contributed, or does it not matter?

4. How do you know an IRA is pre-tax or after-tax?

If this would make any difference in the answers - my income will be around $75000 this year with 15% contributed to 401k.

Thanks in advance for any comments.

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