UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: daveneal Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77404  
Subject: Re: Sabbatical: Roth Rollover? Date: 12/20/1999 1:43 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
yes, do, and hurry. you must complete your rollover before 12/31.

here are some other points:
1. you need not roll over the entire amount in your current IRA.

2. you may wish to roll over up to the top of the 15% bracket, as you will be paying about as low a tax rate as possible.

3. you should pay the taxes with other money, all of the rollover is taxible and should go into the Roth. you will pay the 10% penalty on any amount withdrawn from your regular IRA and not deposited into the Roth IRA.

4. your roth will compound tax free, as you know.

5. since you have 15 or more years to go, you will be able to tap the contributions, but not earnings, from your Roth without the 10% penalty after only 5 years, even though you are not yet 59 1/2. note that the rollover amount is considered a contribution, since you pay the taxes on it!

good luck.
dave neal
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Kiddie Card Board
Should kids have their own credit card?
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Markel Corp.

Markel's Silver Year
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.