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Author: Regulator Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75811  
Subject: Premature Contribution Date: 9/11/1998 1:15 AM
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Seems I read somewhere that if you made your full contribution to a traditional IRA earlier this year and would now like to set up a Roth IRA, you can w/d that contribution and start a Roth w/o any penalty.

My father made his 2K contrib at the beginning of this year, but now thinks the benefits of a Roth as a supplement to his Trad. IRA might serve him better. Can he undo this before the end of 98? Any help would be greatly appreciated!

Thanks!
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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5391 of 75811
Subject: Re: Premature Contribution Date: 9/11/1998 8:50 PM
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Seems I read somewhere that if you made your full contribution to a traditional IRA earlier this year
and would now like to set up a Roth IRA, you can w/d that contribution and start a Roth w/o any
penalty.


Don't know if you can withdraw etc. but I would think not.

Do a transfer from the regular to the Roth. That should be ok


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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5405 of 75811
Subject: Re: Premature Contribution Date: 9/13/1998 10:59 AM
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Greetings, Regulator, and welcome. You wrote:

Seems I read somewhere that if you made your full contribution to a traditional IRA earlier this year and would now like to set up a Roth IRA, you can w/d that contribution and start a Roth w/o any penalty.

My father made his 2K contrib at the beginning of this year, but now thinks the benefits of a Roth as a supplement to his Trad. IRA might serve him better. Can he undo this before the end of 98? Any help would be greatly appreciated!


What you read about was a means to undo the conversion of a traditional IRA to a Roth IRA by transferring the money in the Roth back into a traditional IRA prior to April 15 of the year following the conversion. The easiest way for your father to set up a Roth IRA now is simply to convert the one he established to a Roth IRA.

Regards…..Pixy


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