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Microcap & Penny Stocks : VLVT (was CSMA)

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To: Dick Jaffe who wrote (4166)1/1/1998 10:57:00 AM
From: TraderGreg  Read Replies (1) of 11708
 
Dick--You mentioned the Roth IRA earlier, where the gains are not taxable but the contributions are.

Two questions: 1. If you rollover a current rules IRA into a Roth, what tax liabilities are imposed on the current IRA when your rollover(contributions plus gains)?

2. If you are presently in a high tax bracket and expect to be in a low bracket when you draw down from the Roth, why would you prefer Roth to the traditional IRA? My thoughts have always been that the advantages of the traditional IRA are that you get the benefit of compounding on the gross dollars, which over time can produce an order of magnitude gain. This allows you to borrow the deferred tax, interest free, for many years before ever having to pay the tax. And when paid, the bracket may actually be lower.

Am I missing something here?

TG
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