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Greetings, Foolish friends.

I was checking out a really neat site:
http://www.rothira.com
which has a collection of articles and information about the Roth IRA, and I ran across some information that concerns me. This site is good because there are some articles targeted for financial planners, accountants, attorneys, etc.--more technical information than the general interest articles floating about.

Concerns: in many (19?) states, legislation is needed but I can't get information about the specific legislation. But, the end result is to:
1. Give Roth IRA's protection against bankruptcy and lawsuit awards (traditional IRA's and other retirement accounts already enjoy this protection).
2. Make Roth IRA annual earnings and distributions exempt from state taxes.
3. Frosting, but it's worth asking for: making Roth IRA conversions and contributions exempt from state taxes. (Some states have done this.)

I have contacted my state representative and several authors of articles and can't get specific information on the legislation needed. HELP!!! My state's general session only runs through April and it's gotta be done queeeeck-like so I can make my conversion in '98 with full confidence. I am warning others: do not convert or contribute until you KNOW your state has passed legislation to protect your Roth IRA.

Contact your state legislators now. And post back or email me if you have any specifics on model legislation that I can pass on to my state rep!

By the way, I'm not a political maven by any means, and I'm not even a citizen (application being processed now), but getting constructively involved on issues like this is worth rolling up the sleeves--it helps you, others, and the government.

KentuckyLiz
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Greetings, KentuckyLiz, and welcome.

<<Concerns: in many (19?) states, legislation is needed but I can't get information about the specific legislation. But, the end result is to:
1. Give Roth IRA's protection against bankruptcy and lawsuit awards (traditional IRA's and other retirement accounts already enjoy this protection).
2. Make Roth IRA annual earnings and distributions exempt from state taxes.
3. Frosting, but it's worth asking for: making Roth IRA conversions and contributions exempt from state taxes. (Some states have done this.)>>

On the tax issue, the District of Columbia and 19 states do not yet provide the same tax breaks for the Roth as the federal system does. These states are: AL, AZ, AR, GA, HI, ID, IN, IA, KY, ME, MA, MN, MS, NJ, NC, OR, SC, WV AND WI. Most are expected to amend their tax codes to correspond to the USC.

Just another reason to tread carefully with the Roth until everything shakes out.

Regards……Pixy


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