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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: doniam who wrote (17130)	10/22/2001 4:24:35 PM
From: rgammon	Respond to of 18931

Don, Certainly aware of all the pitfalls. I am a paid tax preparer and have seen alot of the havoc that people have unintentionally brought upon themselves by their general unwareness of tax laws, and rules for handling of retiirement accounts. Taking a cash distrib, under age 59 1./2, gets mandatory withholding, even if you intend to do a Roth conversion. If you DON'T make up the taxes withheld when you deposit to the new account, the IRS may have some words for you, certainly your paid tax preparer will have words to say that will NOT be comfortable to hear. My vote is ALWAYS do a trustee to trustee transfer, NEVER take the cash directly. Using my current custodian, I believe that I can direct a distribution of as little as $100 into a ROTH account and have the appropriately coded 1099 show up early in the following year. Robert