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Author: NoelXX One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75381  
Subject: December investing deadline Date: 12/28/1999 10:11 AM
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Well, it's getting late, December 28th, to be exact. My daughter just received the conversion forms from Vanguard to change her traditional IRA into a Roth IRA while transferring it to Vanguard from her present mutual fund investment.

By the time she gets the forms filled out and signature guaranteed at the bank, we are approaching the last day or two of '99. Then I can overnight it to her present fund, but they still have to release it to Vanguard.

Question is, should I push to get this done in the next few minutes, or would it be better to wait until we get past the crunch at the beginning of January? I'm asking because I don't really know how important it might be to move quickly, or secondly, whether the concerns about investing before the end of the year even apply in the case of transferring a mutual fund into a Vanguard fund instead of into a stock. Thanks for your help.
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Author: TheBadger Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 16966 of 75381
Subject: Re: December investing deadline Date: 12/28/1999 10:26 AM
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A conversion from a regular IRA to ROTH IRA will automatically create a taxable event of some size. Therefore, IMHO I would wait until 1/2/00 to mail the forms in to insure that it becomes a 2000 event and not a 1999 event.

TheBadger


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Author: NoelXX One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17005 of 75381
Subject: Re: December investing deadline Date: 12/28/1999 3:08 PM
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conversion from a regular IRA to ROTH IRA will automatically create a taxable event of some size.
Therefore, IMHO I would wait until 1/2/00 to mail the forms in to insure that it becomes a 2000 event and not a 1999 event.
TheBadger

Thanks, Badger, for your prompt reply. I talked to someone at Vanguard, where I want to transfer my IRA, and she told me to call the present holder of my account and ask them to fax me a distribution authorization which I would immediately return to them and they would cut me a check and mail it to my address before year's end. Then I would have 60 days to forward this check to Vanguard - and still keep this a 1999 event!

She thought it would be to my advantage to show the traditional IRA transfer into a Roth in 1999 rather than 2000, since it might be more difficult to obtain later, given changes in life style or income, etc. I was also wondering why it wouldn't be better to have tax consequences against the 99 value of the IRA since there would be less income to be taxed than in 2000?

I'd appreciate your clarifying my confusion. Thanks a lot.

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