UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Author: RyanK One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75839  
Subject: Start Roth By December? Date: 9/11/1998 5:57 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
There is a commercial that I have seen three times this week that states that there are changes in the Roth IRA and that unless you start one by Dec. 31, you will be missing out on some 'great benefits'.

I am guessing this is just a sales pitch, but I was wondering if there were any changes coming in the near future. I have yet to start funding my IRA as I don't have the income for it yet (still a student), and was wondering if this was something that I should be looking into in the near future.

Thanks for your help,

Fool On!

RyanK
Print the post Back To Top
Author: slwjpw Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5388 of 75839
Subject: Re: Start Roth By December? Date: 9/11/1998 6:19 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
<<There is a commercial that I have seen three times this week that states that there are changes in the Roth IRA and that unless you start one by Dec. 31, you will be missing out on some 'great benefits'.>>

I believe they are talking about the income averaging 'benefit' when converting an IRA to a Roth IRA. This 'benefit' ceases after Dec. 31.

Phil

Print the post Back To Top
Author: cjones38 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5389 of 75839
Subject: Re: Start Roth By December? Date: 9/11/1998 6:56 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
If you start a Roth by Dec. 31, you will save a year to make your 5 years. Jan 1 2002 will be 5 years on the Roth. This change was made in July. It assumes that a 1998 Roth was started Jan 1. Just like Thourobred horses I guess.

Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5408 of 75839
Subject: Re: Start Roth By December? Date: 9/13/1998 11:01 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, RyanK, and welcome.

There is a commercial that I have seen three times this week that states that there are changes in the Roth IRA and that unless you start one by Dec. 31, you will be missing out on some 'great benefits'.

I am guessing this is just a sales pitch, but I was wondering if there were any changes coming in the near future. I have yet to start funding my IRA as I don't have the income for it yet (still a student), and was wondering if this was something that I should be looking into in the near future.


Yeah, you're right, it's a sales pitch. It's main thrust deals with converting a traditional IRA to a Roth IRA by the end of this year so the income from that conversion may be spread over the next four years instead of being claimed all in one year. After 1/1/99, that four-year spread won't be allowed. It also deals with the issue of starting an account this year so the "5-year" rule starts early. That rule pertains to qualified withdrawals of earnings based on the number of "tax-years" it has been open. It means that if you make a deposit by 12/31/98, then you can make qualified withdrawals as early as 1/1/03.

Regards…..Pixy


Print the post Back To Top
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Advertisement