JJ wrote: <<I was thinking I could just go to a discount brokerage after the first of the year and start a regular IRA with $2000 for '97 and $2000 for '98, and arrange for the fastest possible roll to a Roth. I'd like to avoid any pesky little earnings to annoy me with paperwork for four years. Does anyone know of a reason that this wouldn't work?>>TMFPixy replied:<< Yes, it would work. Just make sure the broker knows $2K must be identified as a 1997 contribution and $2K must be identified as a contribution for 1998. To me it seems easier to make a contribution to a nondeductible IRA for 1997, another deposit to the Roth for 1998, and then roll the regular IRA into the Roth. That way there's less chance something will get screwed up by the broker. Regards.....Pixy>>Just a couple of other points to toss in (the redoubtable TMFPixy is a tough act to follow):1) My broker (Waterhouse) is having a tough time getting all of the paperwork together to be ready to offer Roth IRAs by 1/2/98. If you want to make your contribution on 1/2/98, check to see if they'll be ready.2) In order to avoid the paperwork, make sure they can convert your 1997 IRA to a Roth IRA on the same day you make the contribution. Any change in value triggers a taxable event.
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