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Author: daveneal Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75530  
Subject: Re: Sabbatical: Roth Rollover? Date: 12/20/1999 1:43 PM
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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 you will pay the 10% penalty on any amount withdrawn from your regular IRA and not deposited into the Roth IRA.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
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