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After calculating my taxes this year, I find that I owe the IRS a few hundred dollars (considerable when you're a student making less than $10K per year). I found that I can save $300 in taxes by setting up a deductible IRA. I also planned to set up a Roth IRA for 1998, so rolling the deductible IRA into a Roth IRA seemed like an ideal solution. I contatced Ameritrade about this, and their reply indicated to me that after I roll the account over to a Roth IRA a) I can no longer make contributions to it (ie. I would hae to set up a new account to which I can make further contributions), b) the two accounts can never be combined, and c) I would have to pay taxes on the full distribution, even though I was funding an IRA with the distribution. Can anyone confirm these from experience? Any information or advice would be appreciated, as I must set the account up by Monday. Please reply be e-mail (
Jeffrey Stanton
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