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Subject:  Keogh transfer to IRA Date:  5/8/2001  9:37 PM
Author:  Irma Number:  50873 of 127617

I have 2 KEOGH accounts as well as a traditional IRA. I am planning to do a direct transfer (rollover) of the Keoghs into the IRA, in order to consolidate accounts. Co-mingling is not a problems. Apparently the IRS has not yet ruled whether broker's deferred plans comply with their (IRS's)requiremets, thus leaving these plans in virtual limbo (this has been going on for almost a year and it affects all major brokerage firms). It was suggested that I transfer most of the assets in the KEOGH accounts to the IRA, leaving $2500 in the KEOGHs, in order not to terminate the plan until the IRS ruling. According to the broker, if I were to terminate the Keoghs at this time, the danger would be that they could be disqualified, I assume because they were terminated before the brokerage firm could modify the plans according to the IRS ruling? I would appreciate any feedback about tranfer to IRA without terminating KEOGH plan. Thanks in advance.

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