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Subject:  Re: Still don't know whether to convert to Roth Date:  6/5/2000  2:08 PM
Author:  blford Number:  22377 of 88529

Hi EditorialWe,

It looks like you recieved all kinds of good suggestions from a variety of viewpoints. My wife and I had to face this challenge a couple of years ago, but our decision was so much easier for us to make.

Since we were in a lower tax bracket we didn't actually have to pay the taxes on our rollover. We had the Earned Income Credit that gave us some money back and also paid the taxes on our rollover for us. It wasn't much either, $400, but to us at that $400 was a lot of money. If it had been $1700 as you're having to deal with we probably would not have done it.

I think Millerd had some good ideas if I read correctly. If you put the $1700 to work for you today, instead of paying taxes with it you could potentially have a LOT more money when you retire because of it.

Then I guess you would have to open another account and make that one your Roth. Contribute the maximum you can afford to the Roth and put the rest into the Traditional IRA. This way you'd already be $1700 ahead of the game.

I hope you got the answer you needed and/or wanted. Good luck with all of this.

Fool On!

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