Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: JustaJester Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121179  
Subject: Re: Roth conversion Date: 3/27/1998 2:32 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0

Elan,

I'm sure you'll get a more thorough and professional response from TMFTaxes or KAT, but I'll share my thoughts on the subject.

I have opted for the second alternative that you outlined: to add $2000 for 1998 to 1997's $2000, then convert the $4000 IRA to Roth. I believe the advantage to this is that I will be able to have one pot of money to work with for my ER4 (thanks!). This will make it easier to keep the amounts evenly distributed across all four stocks at rebalance time.

To the best of my knowledge it is not just possible, but very strongly recommended, to keep converted Roths separate from contribution Roths. I believe this has to do with computing the 5-year holding period, which is done differently for conversion vs contribution.

BTW, I appreciate all your good work, Elan, so here's hoping that you keep at it!

JJ

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Apple

Apple and Ninety Years Ago
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement