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<<We early withdrew our money from an IRA to invest in stocks. The IRA was with Merrill Lynch and we were
told we would have to liquidate this assett if we wanted to switch to another company. We were not happy with the person handling our ccount, since he didnt seem to be working in our best interest. We closed the account. In Feb, we re-invested about 2/3 of this withdrawn money in the Dow top yielders in accordance with the foolish four strategy. What else
can we do to minimize or offset our tax burden when 1999 tax time comes around?>>

The facts are not real clear here. Roy's response appeared to assume that the reinvestment is not in a rollover IRA. Is that true? If you did not reinvest in a rollover IRA, the next question is whether there is still time to do so. Have more than 60 days elapsed since you received the distribution from the Merrill Lynch IRA? If you're still within 60 days, some fast footwork could save you some taxes, depending on your situation. But even there, we don't know the facts. If the IRA had nothing in it but nondeductible contributions, the immediate tax cost of failing to roll would be zero (although the long-term consequences could be costly). Give more facts, get more help . . .

KAT in Chicagoland
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