Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: LordDarley who wrote (10405)	11/12/1997 9:27:00 AM
From: Zoltan!	Read Replies (2) \| Respond to of 77400

Thanks for the boilerplate<g>. Or do you always use the royal "we" when you speak, oh Lordy? The article I cited gives the pros and cons concerning various scenarios. I know and Roth admits it is a one time revenue generator and as for Congress changing the terms, just when is anyone safe from that? The answer, of course, is "NEVER". And that applies to any law, plan or treatment. In your first sentence you imply that one must move the entire IRA to Roth and that you must do it all at one time. If that is what you meant then that is not the case. In my prececent post I said to "think" about it, I will continue to do so before I act and certainly urge others to do the same. When I attended law school anyone who rushed to judgment was usually shot down. The best answer usually began with, "It depends". That hasn't changed. There is ample time to make any decision and there will be much discussion in the media about this in the near future you can bet. Again, thanks for your considered opinion and Regards

To: LordDarley who wrote (10405)	11/12/1997 10:25:00 AM
From: Eric Dickson	Respond to of 77400

OFF TOPIC - ROTH IRA Thanks for the infomative post. One question -- Is the tax on the conversion only on the contributions which were previously deducted or is the tax on all of the accued capitol gains on the assets in the account at the time of conversion? Is the advice different for those of us who have been funding a non-deductable IRA in the past. Also, for new contributions in 1998 and aside from the conversion issue, isn't the Roth IRA very attractive? Thanks.

To: LordDarley who wrote (10405)	11/12/1997 12:50:00 PM
From: dmf	Read Replies (1) \| Respond to of 77400

LordDarley: Re: Conversions to Roth IRA's Thank you. I've read too much about this and am still somewhat confused. Your explanation makes some sense of the information I've been trying to assimilate. More than ever I am now an advocate of simpler taxes. As I start to look toward retirement the complexity of understanding tax implications and IRA's is overwhelming. Even the professionals hesitate to simplify their explanations (and I understand why). I would vote for a consumption tax rather than an income tax...those that obtain the benefits of whatever they want (by spending their money) can pay a tax. Those who work (or save and invest) would not be hit with taxes because they generated personal wealth (however small, however large). Didn't mean to get so off topic. Just appreciate your comments! dmf

To: LordDarley who wrote (10405)	11/12/1997 1:30:00 PM
From: TonyE	Read Replies (1) \| Respond to of 77400

Darley said <A big additional benefit concerns estate planning, traditional IRA's are decimated by taxes at death, while Roth IRA's are to be taxed like other assets.> I happen to practice law in this area and tell most of my clients it would be foolish to pay income taxes now on the entire IRA ----- (1) There's an eligibility cap for IRAs, no? 150K->160K for married couples... Is that gross or net. If the former, then it just shows that Clinton thinks that the middle class in Southern Cal is filthy rich. In Irvine, half of the adults has a Bachelor's degree or better. Proffesional working couples are the norm throughout much of Orange County and the West Side of LA. We ain't rich, we just live in the land of the 'muy jumbo mortgage' to the point where the notion of non jumbo mortgage is a refinance on a home you've owned for 15 years. So, it's 401Ks for us. (2) When we die, We plan to just leave just enough money for my kids to get through a PhD is they want it, a brand new Honda each, and the funerals. And if they are adults already, they'll just get the Honda and the funeral moneys. Tony ;-)