I'm looking for guidance. This is a pretty tough situation and I have yet to find an "expert" capable of understanding the question, less yet all the twists to the answer. Anyone's input is welcome.In 1998 we should have an AGI of $115,000 (mom, dad, 2 kids under 5). I have a 401K at my previous employer of over $500,000 that I can roll into an IRA with a weeks notice. I have an IRA with about $30K and a 401K at my present employer of about $30K. We have no other savings to speak of. We live in Texas where there is no state income tax.I am considering selling the house (about $30K equity) and moving to Boston or Palo Alto, Ca. in August, 1999 to get an MBA at either Harvard or Stanford, respectively (assuming I can get in). I'd estimate that I will have about $60K AGI for 1999 before we'd move. The question is, what is the best strategy for minimizing taxes. I'm pretty sure that rolling the 401K monies into a self directed IRA is the best thing... given that I can take out the education expenses (estimated at over $60K/year for these two programs). I'm concerned about the state taxes of Mass. or Ca. kicking in.To add a further twist, Harvard (my first choice) has a new program that allows starting in January '00 instead of Aug '99 (no summer break though). Should I just work the full year 1999 and be a student with no income for '00 other than taking money out of my plans.All helpful comments are appreciated.
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