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Roy and All You Over-Taxed Fools, I just found out that after I had made my decision to convert our IRAs to Roths this week, that there could be trouble in the future... I thought that my qualification was based on how much my AGI was for the past year, 1997 tax year, after all that's the only real data that I have to base this important decision on at this time... but, I just got in the Jan. '98 issue of Money magazine and there is an extensive discussion of IRAs beginning on page74. They warn that you must be below the $100,000 limit THIS YEAR... 1998! So now that we have converted our IRAs, we will have to be very careful about any windfalls, stock profits, etc. that might push our Adjusted Gross Income levels over this limit. Should this happen, we would be required to ROLL OUR ROTH IRAs BACK INTO REGULAR IRAs with a lot of hassle and who know what problems would occur having already paid the taxes on what will amount to be a significant 4 year average tax bill!! So, BE CAREFUL WHEN YOU DECIDE TO CONVERT! Sit down and plan out your coming year's income very well and realize that it may be necessary to be able to fine tune your income should you wind up getting an unexpected bonus for Christmas 1998 or that your long lost great uncle includes you in his will and you find that you are now just over the $100,000 Roth IRA qualifying limit... So just remember, investing can be fun, even doing taxes can be fun with these new CD-ROM computer programs, but these are BIG decisions you are making... so BE CAREFUL OUT THERE... Mel... the old Wall Street Prospector
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