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Strategies & Market Trends : Roth IRA ideas -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (373)	1/20/2000 11:14:00 AM
From: Kurt N	Respond to of 388

I'm looking for an investment vehicle that provides the following, and am wondering if a Roth IRA would fit. a) to be used to provide money for college for my nieces and nephews. b) money invested would grow tax-free c) money could be withdrawn tax-free, with no penalties d) money would be under my control in my name (ie. if a kid doesn't go, then they don't get anything). I thought about an Education IRA, but then that would hurt their chances for financial aid (and they could withdraw that money and not use it for college, after paying taxes and penalty). Any year that a withdrawal is made, then Hope scholarship credits ($1500/year) can't be taken. I have read that you can withdraw from an IRA penalty-free for educational expenses for yourself, spouse, children, grand-children. Does that apply to nieces and nephews as well? I could give money to their parents to put in a Roth, but then their is a risk that they would withdraw it and spend it. Thanks, Kurt

To: Colin Cody who wrote (373)	2/17/2000 1:58:00 PM
From: J R KARY	Respond to of 388

How are RIRA stock recharacterizations valued ? If you converted to a RIRA (Roth) from a TIRA (Traditional) and were permitted a partial or full reversal (recharacterization) , how is it valued if it was for the same stock . For example: ---- 100 shrs (@$10/shr) of ABC from TIRA to RIRA ; 100 ABC shrs reversed @ $5/shr Broker 1099Rs (two) for both distributions display only dollar amounts. ---- Not showing the RIRA reversal as stock the amount difference suggests $500 was taken or remains in the RIRA . Thanks in advance, Jim K.