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Subject:  Re: Rollover TIRA to Roth Date:  4/15/2004  6:27 PM
Author:  johnb1662 Number:  40522 of 96882

I am now 66 years old. I did not open a Roth IRA when they first became available because I did not believe Congress could be so generous -- NEVER pay taxes on the accumulated earnings? No way those greedy SOBs would ever allow that. I was wrong.

During the period 1982 to 1986 I sent annual checks for two thousand dollars to a mutual fund for a spousal IRA for my wife who is seven years older than I am. That is a total of $10,000 in contributions. We started drawing when she got to the 70.5 mandatory age. She has drawn about $25 K and has about $75 K left. I got a tax deduction for the $10 K in contributions, but I would much rather have put in $10 K after tax and never pay taxes on the $90 K increase during the "compounding" period and not be required to make withdrawals.

I retired in 1999 and rolled the balance in my company 401(k) into a rollover IRA. I have been moving about $10 K per year from my traditional IRA to a Roth Conversion IRA in the hope that (1) the earnings from date of conversion to when I draw from it will be significant and never taxed (2) the taxes have to be paid someday so why not now and (3) there is no mandatory withdrawal requirement for Roth IRAs. The risk is that there will in fact be a loss, but life is full of risks.
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