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Subject:  Re: Roth IRA transfer Date:  4/27/1998  7:43 AM
Author:  KATinChicagoland Number:  3062 of 95768

<<I am considering moving a 6 figure IRA to a Roth IRA, paying income taxes on gains now vs. 14 years from now when I access money. Reason for this is I expect minimum income tax rate in 98. Sooo, what say you fools. I dont know whether to pay Uncle Sam now at 15 percent tax on gains or pay in 14 years at who knows what! Input is much appreciated.>>

You've already received a number of thoughtful responses so I'll just make a couple of points. One is that your decision isn't necessarily to roll or not to roll. You can roll *part* of your IRA if that works as a way to keep most or all of the rollover in the 15% bracket.

People who don't work with taxes all the time are not necessarily familiar with the way tax brackets work. I've included a page on this subject at:

If you expect to be in the 28% bracket when you retire in 14 years, you should benefit from rolling the entire amount provided that you can pay the tax out of non-IRA money.

And it's virtually certain now that the 4-year spread on taxes from a Roth IRA conversion will be elective. The only way this won't happen is if the entire IRS restructuring bill goes down in flames, which is hard to imagine even though there are some disagreements between the House and Senate on some important particulars.

KAT in Chicagoland
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