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Author: MarkJW Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123155  
Subject: Re: Converting an IRA Date: 6/25/1998 3:28 PM
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>probably will not be able to make deductible
>contributions to my existing IRA, but converting will
> give me a tax hit of about $6k, which will sting a
>little. I realize I can spread that over four (?)
>years, but I'm really trying to decide if the there is a
>real difference seeing as how I will not have that 6k
>to invest in the present.

If you can pay that tax hit out of non-IRA funds, you probably come out ahead in the long run. Reason: Effectively, you now have more $ in your IRA.

What I'm wondering though, is will I be better off on the whole. I agree that my IRA will be better of, because in essence I can make a 6k deposit to it. But Will it make a real difference considering that I will then not have that 6k to invest in other means. I guess I'm answering my own question, because those other means will not likely be tax free.

Nevermind ;-)

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