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Author: lslim Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75642  
Subject: IRA: phase out Date: 8/11/1999 10:16 AM
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My AGI will fall within the phase out range this year. Is it better to take an estimated guess and contribute partially to a Roth IRA and the remainder to a traditional IRA and adjust in Jan '00 (before the April
15th deadline)? Or, would you recommend skipping the administrative hassle and contributing all to a traditional IRA?
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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13070 of 75642
Subject: Re: IRA: phase out Date: 8/11/1999 12:21 PM
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lslim: "My AGI will fall within the phase out range this year. Is it better to take an estimated guess and contribute partially to a Roth IRA and the remainder to a traditional IRA and adjust in Jan '00 (before the April
15th deadline)? Or, would you recommend skipping the administrative hassle and contributing all to a traditional IRA?"


I like the Roth IRA, so I would wait until AGI was calcualted next spring, and then make the maximum Roth contribution and use the balance ($2,000 - Roth contribution) for a regular IRA.

Just my $0.02. Regards, JAFO



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Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13072 of 75642
Subject: Re: IRA: phase out Date: 8/11/1999 1:55 PM
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lslim writes:

My AGI will fall within the phase out range this year. Is it better to take an estimated guess and contribute partially to a Roth IRA and the remainder to a traditional IRA and adjust in Jan '00 (before the April 15th deadline)? Or, would you recommend skipping the administrative hassle and contributing all to a traditional IRA?

I reply:

I was in that situation last year, and probably will be this year as well. I simply made my contributions to my traditional IRA, and when I knew my AGI, I recharacterized as much as possible to a Roth contribution. I use Vanguard, and the administrative hassle was minimal -- one form to open the Roth IRA, and another to recharacterize the contributions (along with their associated earnings, which Vanguard calculated). --Bob

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