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It is definitely crunch time to try to get your Roth converted before the end of the year. But, you can still convert your old IRA next year. You just won't benefit from the 4 year schedule to pay the taxes on the IRA money (this goes away in 1999). So, don't get overly anxious about this.

I can't give the answer you need, but I can offer you some advice and some tools to help you out:

It's not a "given" that a Roth is better for you. Things to consider:

- Current tax rate and retirement tax rate. Since your current tax rate is high, the deductible IRA would probably get the nod.
- Years to retirement. If you hold your investment long enough (30+ years, e.g.), the compounding in the Roth will blow away the deductible IRA, even for high tax bracket earners.
- Earnings on taxable accounts. Consider investing the money saved in the deductible IRA (which would have gone to pay taxes for a Roth) into a long term equity investment.

Fortunately, calculators are available to quickly determine the benefits of each situation based upon your circumstances.

There is a calculator available which can help you determine what IRA is best for you:

A more complicated calculator is available which will also help you determine if converting is good for you:


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